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Item 6f. Authorize funding for the preparation of the Water Treatment Plant Facility Infrastructure Renewal Strategy Plan
Item 6f Department: Utilities Cost Center: 6003 For Agenda of: 7/18/2023 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Utilities Director Prepared By: Mychal Boerman, Deputy Director – Water Shawna Scott, Special Projects Manager SUBJECT: AUTHORIZE FUNDING FOR THE PREPARATION OF THE WATER TREATMENT PLANT FACILITY INFRASTRUCTURE RENEWAL STRATEGY PLAN RECOMMENDATION 1. Authorize the City Manager to award the contract for the Project if the bid is within available project funding of $451,111; and 2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing Water Fund Unassigned Working Capital for preparation of the Water Treatment Plant Facility Infrastructure Renewal Strategy Plan” in the amount of $301,111. REPORT-IN-BRIEF The City’s Water Treatment Plant (WTP) does not currently have a comprehensive asset management plan to guide the maintenance and replacement of plant infrastructure; therefore, preparation of a plan was included as a capital project in the City’s 2021-23 Financial Plan. The original budget estimate for the Project was $150,000 based on a simplified scope of work limited to an audit of existing aging infrastructure and incorporation of the findings into a ten-year capital project prioritization and renewal strategy. In addition, the original 2021 budget was estimated prior to major inflation- related wage and price increases that the City has been experiencing over the past year. This will be the first plan for this essential facility, which presented challenges to more accurately identify a realistic scope and budget estimate that would provide the best value for the City and current and future water customers. Following City Council authorization on January 17, 2023, staff released a Request for Proposals (RFP) for the project. Upon review of the consultant submittals in response to the RFP, it was clear that the scope recommended by the consultants was based on their substantial experience with similar work efforts in water treatment plant asset review, assessment, and facility planning. This report includes a summary of the changes to the project scope, staff’s assessment of the value to be gained with a holistic and strategic plan, and potential alternative actions, such that the City Council can make an informed decision regarding the recommended funding request. Page 69 of 165 Item 6f POLICY CONTEXT The Project supports Major City Goals including the Economic Recovery, Resiliency, and Fiscal Sustainability and Climate Action, Open Space, and Sustainable Transportation goals because it will provide the analysis, data, and recommendations supporting ongoing and future investments in maintaining critical infrastructure, ensuring adequate treatment plant capacity to support existing and future development, and providing resiliency and redundancy required due to the impacts of climate change. The Project is consistent with the City adopted General Plan Water and Wastewater Element (WWE) Goals A 2.1 and A 3.1 because developing a plan for the maintenance and optimization of the Water Treatment Plant (WTP) is necessary to ensure a long-term, reliable water supply and manage the City’s water resources to meet both current and future water demand associated with development envisioned by the General Plan. DISCUSSION The City’s WTP treats water from three surface water reservoirs (Salinas, Whale Rock, and Nacimiento) to meet the demand from the City, and to satisfy contractual water delivery obligations to Cal Poly. The WTP was constructed in its current location in Stenner Canyon in 1963 and was originally designed to treat up to a rate of eight million gallons per day (mgd) equivalent to about 9,000 acre-feet annually. It was later upgraded to treat up to 11.5 mgd in 1977 and again in 1994 to treat up to 16 mgd. In 2008, a $13.4 million improvement project was completed, and additional capital improvement projects are in progress or have been completed such as the recent Energy Efficiency, TES LA Energy Storage, and Permanent Backup Generator projects. The WTP does not currently have a comprehensive asset management plan to guide the maintenance and replacement of plant infrastructure. As the last major WTP upgrade was completed in 2008, that equipment is now 15 years old and will need major maintenance and/or replacement in the next decade. Development and adoption of an Infrastructure Renewal Strategy will facilitate asset maintenance and replacement prioritization, process optimizations, compliance with future regulatory conditions, and more refined capital improvement planning and associated budgeting. In addition to looking solely at infrastructure replacement, the recommended scope of the Project would also include a holistic look at water quality, automation, schedules and staffing alternatives, climate change, disaster resiliency, and changing regulatory considerations. The purpose of the Project is to develop a comprehensive Infrastructure Renewal Strategy for the City’s WTP. The purpose of such a plan will be to identify and prioritize WTP maintenance projects and integrate this strategy into the long-term Capital Improvement Plan (CIP). The Project was included in the 2021-23 Financial Plan and 2021-23 Financial Plan Supplement, with an identified budget of $150,000. On January 17, 2023, the Project was included on the City Council agenda and the City Council took the following actions to move the project forward: Page 70 of 165 Item 6f 1. Approved the Request for Proposals (RFP) for the preparation of the Project and authorized staff to advertise the Project for proposals and bids; and 2. Authorized the City Manager to award the contract for the Project if the bid is within available project funding of $150,000. Following Council’s authorization, staff released the RFP on February 10, 2023 and conducted a pre-proposal meeting and WTP facility tour for interested consultants on February 27, 2023. Proposals submitted in response to the RFP including qualifications and scope of work descriptions were assessed and ranked by a technical review panel comprised of City staff. Background The original budget estimate for the Project, as presented in the 2021-23 Financial Plan, was $150,000 based on a simplified scope of work that would be limited to the provision of an audit of existing aging infrastructure and incorporation of the findings into a renewal strategy that would prioritize capital projects programed in the next decade. In addition, the original 2021 budget was estimated prior to major inflation-related price increases that the City has been experiencing over the past year. As noted above, the WTP does not currently have an asset management replacement plan to build upon, and it will be the first plan to be prepared for this essential facility and serve as a methodical, orderly and efficient approach for asset management and replacement. The original scope needed to be expanded to reflect a fully analysis and a budget estimate that would provide the best value for the City and current and future water customers. Upon review of the consultant submittals in response to the RFP, it was clear to the technical review panel that the scope recommended by the consultants was based on their substantial experience with similar work efforts in water treatment plant asset review, assessment, and facility planning. In addition, the proposed scope made assumptions on total assets needed to be evaluated including comprehensive risk assessments and assumptions for potential regulatory considerations that exceeded the level of base effort identified by the RFP. Following the panel’s review, Kennedy Jenks was selected as the top-qualified consultant based on selection criteria presented in the RFP. Staff then opened and reviewed the consultant’s cost estimate and initiated scope of work negotiations. The proposed cost was significantly higher than originally anticipated; however, the panel determined the larger scope proposed by the experienced consultant was appropriately scaled given the significant scope on infrastructure renewal plans at the WTP and that the proposed work would provide more value to the City and its water customers now and in the following decades. The table on the following page highlights the evolution of the Project scope from the 2021 original budget estimate to the currently recommended sco pe and associated budget. Page 71 of 165 Item 6f 2021 Initial Scope from 2021-23 Financial Plan 2022 Refined Scope from Released RFP 2023 Recommended Scope from Consultant Proposal (also includes all RFP scope items) Review and update asset inventory, age, and estimate of remaining life. Prioritize WTP CIP for the next decade. Review and update asset inventory, age, and estimate of remaining life. Conduct an audit on the existing facility and compile source water data. Develop asset registry and creation of inventory database and dashboard memorializing staff knowledge. Conduct process and asset condition assessment including a risk analysis based on staff interviews and asset inspection and testing. Conduct Business Risk and Vulnerabilities Analysis, including development of a safety, regulatory, and financial risk matrix. Preliminary asset condition assessment and audit followed by a detailed condition assessment for the most critical and vulnerable assets. Review and summarize regulatory/permit requirements and identify emerging concerns. Assess likeliness of future regulations and impacts on the existing system and identify potential adaptations. Evaluate vulnerabilities to climate change including extreme drought/ precipitation and provide list of the assets most impacted. Define facility needs and alternatives and develop prioritization methodology. Forecast asset maintenance and replacement budgetary needs. Address operational schedules and staffing requirements and increased instrumentation. Develop infrastructure renewal strategy including near-term (0-5 years), medium-term (5-15 years), and long-term (10-25 years). Included in scope of work (refer to Attachment A). Value of Recommended Scope and Associated Cost The recommended scope of work would include a detailed condition assessment for assets identified as highly critical to operation of the WTP, including identification of vulnerabilities, which will inform prioritization of asset maintenance and replacement beyond what would be identified through a basic asset audit process (Attachment A, Tasks 3.2 and 3.3). Page 72 of 165 Item 6f In addition, the recommended scope of work includes a process and regulatory condition assessment (Attachment A, Task 3.4), which will include an industry expert assessment of future water quality regulatory and permit requirements and treatment processes to address emerging contaminants, how these requirements would affect operation of the WTP, and recommendations for adaptations and process changes, including the appropriate timing to complete these changes (Task 5, WTP Infrastructure Renewal Strategy). This task also includes an evaluation of vulnerabilities to changing climate conditions such as extreme drought periods and high precipitation events. This will allow the City to best prepare and plan for the future and minimize unknowns that could result in expensive reactionary capital projects, unanticipated increases in operating costs, or operational interruptions. The process and regulatory condition assessment will also evaluate opportunities to optimize operations and management processes related to stabilization of source water quality and associated treatment including THM1 removal, improved resiliency related to water storage and distribution, and staff schedule efficiencies. This level of effort is needed to identify strategic and proactive improvements and process automations that would manifest future cost savings and allow the City to better utilize its existing workforce. Through negotiations, the consultant modified their scope of work, resulting in a cost reduction of approximately $35,000 from the originally proposed bid, without compromising necessary elements that are expected to result in cost savings in the future as a result of comprehensive risk assessment, predictive asset management, potential energy and chemical use savings, and staffing efficiencies (Attachment A). Compared to the original budget estimate, approval of the recommended budget and scope of work will result in a Project that is anticipated to facilitate future grant opportunities, particularly related to climate change resiliency and adaptation, hazard mitigation, and energy conservation and resiliency. 1 Trihalomethanes (THMs) are a by-product of the water treatment process. They are formed when natural organic material, such as the decaying vegetation commonly found in lakes and reservoirs, reacts with chlorine used to treat the water. Accelerate Future Work & Save Staff Time When it is time to undertake a specific project, the IRS will contain the necessary information to accelerate the design process and reduce staff hours necessary to prepare a project for design. Reduction of Electrical Expenditures for THM1 Removal Refinement of existing treatment processes will reduce THM production, allowing for the reduction of run time on existing THM removal equipment that is extremely energy intensive. Source Water Optimization Due to limited operation and infrastructure bottlenecks, the City only uses approximately 85% of its Nacimiento entitlement. Source water optimization will ensure that the City has a plan for full utilization of Nacimiento Reservoir water. Data Driven Replacement/ Rehabilitation Schedules Utilizing advanced technology and equipment, the consultant team will prioritize critical equipment for replacement or rehabilitation based on actual condition rather than run hours or installation year. This includes equipment to conduct advanced vibration analysis and thermo-imaging, which will help determine the useful life of assets. Use of Asset Data to Populate GIS Database WTP assets are not currently recorded in GIS. IRS asset research will streamline efforts to record asset information in the GIS database, saving staff time and labor hours for GIS consulting services. Page 73 of 165 Item 6f This project will also ensure that the City has the appropriate information to document the stability and resiliency of the City’s water treatment capabilities, which is an important element when credit rating agencies provide credit ratings for the Water Fun d. High credit ratings ensure that the City is able to secure low-interest loans for future projects that must be debt-financed, such as the replacement of Reservoir Two. Through the RFP and proposal review process and discussions with industry experts, staff learned of the additional opportunities and associated work efforts to address regulatory, efficiency, critical risk, and climate change issues through the strategic plan process. This holistic approach will provide efficiencies, benefits, and value t o the City and our customers now and in the future. Therefore, the original appropriation of $150,000 has been found to be inadequate to fund the scope of work necessary to fully evaluate the WTP and associated assets, identify realistic risks and opportunities for adaptation and resiliency, and develop a strategic plan that is based on sound data, independent analysis, and anticipation of future needs for the City and future anticipated regulatory compliance requirements. Moving through the process there will be opportunities to realize cost savings by establishing check points for re-assessment with the consultant. For example, following completion of Task 2 (Baseline Inventory and Data) the City will have an opportunity to work with the consultant to further define the strategic focus of subsequent Tasks 3 -5, particularly Task 3 (Process/Asset Condition Assessment). In addition, the proposal scope estimates a preliminary review of 3,000 assets, with a condition assessment on 15% of those assets (450). Task 2 will provide the information necessary to refine this assumption with actuals, which will inform the work necessary under Task 3 (Process/Asset Condition Assessment). Therefore, staff recommends allocating the full requested budget of $451,111 to ensure smooth transitions through the audit, assessment, evaluation, planning, and documentation processes. Previous Council or Advisory Body Action The 2021-23 Financial Plan, 2021-23 Financial Plan Supplement, and associated budget adopted by the City Council included the WTP “Facility Master Plan”, and identified $150,000 for fiscal year 2021-22 for preparation of the Plan. On January 17, 2023, the City Council approved the RFP for preparation of the Project and authorized staff to advertise the Project for proposals and bids, and authorized the City Manager to award the contract for the Project if the bid is up to $150,000. Public Engagement The RFP was included in the January 17, 2023 City Council Agenda package. The RFP was released on Bidsync and was advertised in the local newspaper (New Times). Page 74 of 165 Item 6f CONCURRENCE The WTP Supervisor, Jason Meeks, was a key contributor to the development of the RFP and concurs with the scope of the Project as proposed by the top-qualified consultant. The Finance Department supports the appropriation of funding from unassigned working capital reserves. ENVIRONMENTAL REVIEW The scope of the action is limited to consideration of funding for and preparation of the WTP Facility Infrastructure Renewal Plan. Once complete, staff will return to the City Council for consideration of the California Environmental Quality Act (CEQA) determination and Plan approval. FISCAL IMPACT Budgeted: Yes Budget Year: 2023-25 Funding Identified: Yes Fiscal Analysis: The 2021-23 Financial Plan, 2021-23 Financial Plan Supplement, and associated budget adopted by the City Council includes $150,000 for the Project (Water Treatment Plant Major Facility Maintenance, Facility Master Plan; 1000542). City Council authorized up to $150,000 for the Project on January 17, 2023. As noted above, staff is requesting funding in the full amount of $451,111. Therefore, an additional $301,111 is needed from Water Fund Unassigned Working Capital to fully fund the project (Attachment B). The approximate current balance in the Water Fund Unassigned Working Capital is $9,245,664. Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost Water Fund CIP 10005421 $150,000 $150,000 $0 $0 Water Fund Unassigned Working Capital2 $9,245,664 $301,111 $8,944,533 $0 Total $9,395,664 $451,111 $8,994,533 $0 Notes: 1 Amount previously authorized (January 17, 2023) 2 Current funding request Page 75 of 165 Item 6f ALTERNATIVES 1. No Project. The City Council may choose to reappropriate the current funding allocation of $150,000, which would eliminate the Project from the Utilities Department’s capital work plan. This alternative is not recommended, as there is no current asset or strategic plan for the WTP, and would result in future untimely capital improvements, ultimately resulting in increased costs for operation, maintenance, asset replacement, and process and treatment modifications. This alternative may also compromise the City’s ability to maintain our existing credit ratings and successfully obtain grant funding to offset capital costs, particularly related to climate change resiliency and adaptation, hazard mitigation, and energy conservation and resiliency. 2. Deny funding allocation request and maintain current budget allocation of $150,000. The City Council may choose to deny the funding allocation request. Staff does not recommend this alternative as the requested funding is needed to fully implement the Project. Denial of the fund ing request would require the elimination of the necessary Project elements that are expected to result in cost savings in the future as a result of comprehensive risk assessment, predictive asset management, potential energy and chemical use savings, and staffing efficiencies. Denial of the funding request may also compromise the City’s ability to maintain our existing credit ratings and successfully obtain grant funding to offset capital costs, particularly related to climate change resiliency and adaptation, hazard mitigation, and energy conservation and resiliency. 3. Reduce amount of funding allocation. The City Council may choose to reduce the funding allocation request. Staff does not recommend this alternative as the requested funding is needed to fully implement the Project. Reduction of the funding request would require additional scope negotiations that would likely result in the elimination of necessary elements that are expected to result in cost savings in the future as a result of comprehensive risk assessment, predictive asset management, potential energy and chemical use savings, and staffing efficiencies. Denial of the funding request may also compromise the City’s ability to maintain our existing credit ratings and successfully obtain grant funding to offset capital costs, particularly related to climate change resiliency and adaptation, hazard mitigation, and energy conservation and resiliency. 4. Break the scope of work into separate phases. The City Council may choose to maintain the current budget allocation of $150,000 for implementation of the Project through Task 2 (Baseline Inventory and Data). This alternative is not recommended as it would impair a smooth transition and efficiencies through the evaluation process and development of the Infrastructure Renewal Strategy and may result in cost increases as it would require a separate consultant contract for the later phases of work. Breaking the scope of work into separate phases may also result in the discontinuity of Project delivery due to staff transition between the multiple phases of the project. Page 76 of 165 Item 6f ATTACHMENTS A - Proposed Scope of Work and Cost Estimate B - Draft Resolution authorizing Water Fund Unassigned Working Capital for preparation of the Water Treatment Plant Facility Infrastructure Renewal Strategy Plan Page 77 of 165 Page 78 of 165 Kennedy Jenks | IRS Scope of Work 1 CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE RENEWAL STRATEGY - 2023 KENNEDY/JENKS CONSULTANTS, INC. Project Cost Estimates Project Descriptions PFDs Chemical Risk-based Project Prioritization Needs Analysis Risk Matrix O&M Targets System Threats Analyze Failure Patterns Mechanical Electrical Structures Develop LOF & Update Risk Profile Stranded Assests and Energy Conduct Staff Interviews Data Gathering & Review Condition Process Assessments Constraints Rehab & Replace Strategies Prioritization Mechanism Final IRS Business Risk & Vulnerabilities Gather Baseline Data Condition Assessment System Level Risk Analysis Prioritize Improvements IRS Plan Develop Asset Registry Fill CMMS Data Gaps Predictive AM Strategies Task 3 Task 3 Task 3 Task 4 Task 5 Scope of Work This section presents our proposed scope of work to develop the Water Treatment Plant Facility Infrastructure Renewal Strategy (IRS) based on the scope of work presented in the Request for Proposal (RFP). Additions, assumptions, deliverables, and clarifications to the scope of work are provided in green. Identify and Assess Phase Risk & Mitigation Phase Repeatable Framework A summary of the proposed tasks and deliverables, including technical memorandum (TM), workshops, and meetings, is provided in the table below. Task Major Deliverables Meetings Task 1 Project Management • Meeting agendas, materials, and minutes Project Kickoff, 18 project meetings, City council meeting Task 2 Baseline Inventory & Data • Data request • Data Draft & Final TM • Water Data Draft & Final TM 4-day Staff interview workshop Task 3 Process/Asset Condition Assessment • WTP Regulatory/Code Draft & Final TM • Process/Asset Condition Assessment Draft & Final TM Meetings for this task are included in Task 1 Task 4 Prioritization Methodology, Needs & Alternatives Analysis • Needs & Alternatives Analysis Draft & Final TM Task 5 Water Treatment Plant Infrastructure Renewal Strategy • Renewal Strategy/CIP Drafts & Final TM Task Required Task Optional Added Value Task Page 79 of 165 Kennedy Jenks | IRS Scope of Work 2 CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE RENEWAL STRATEGY - 2023 KENNEDY/JENKS CONSULTANTS, INC. Task 1 – Project Management This task includes all project monitoring and administration, attendance at progress meetings with City staff, and project quality assurance/quality control (QA/QC) activities. As part of the project management task, the following subtasks are included: 1.1 Project Management • KJ will assign a project manager that will be in regular contact with City staff to incorporate decisions and suggestions regarding the direction of the Project. • Weekly status reports will be emailed to the City. These status reports will be supplemented with regular telephone calls to the City as required to discuss the status of ongoing work efforts and outstanding issues. There is an opportunity for cost savings by reducing these status report updates to a monthly occurrence. • Invoices will include a detailed summary of tasks completed during the period and include any amended changes in scope and/or fee. • KJ will prepare and provide a workplan for communications, meetings, and progress reporting to ensure the Project is kept on schedule and within budget. • KJ will coordinate with the City’s Project Manager on activities including scheduling meetings, tracking, and reporting on work in progress. • KJ will prepare a Microsoft Project schedule that will include a schedule of items to be submitted by the City and the project team and a log of decisions to be made with action items. • This task includes project setup and closeout activities. 1.2 Progress Meetings and Presentations During the Project, KJ will attend progress/coordination meetings with City staff to discuss issues related to the Project and update the City regarding progress. KJ will prepare meeting notes and distribute them to the City, and the team will support City Staff at public meetings, including assistance with presentations and responding to questions from the public and City Council. Anticipated meetings are as follows: Meeting Description In-Person Meeting Virtual Meeting Project kick-off meeting at the City WTP 2-hrs Two meetings to review baseline inventory and data 1-hr/mtg Twelve meetings to discuss technical memorandums (assumes six TMs with two meetings per TM, excludes optional tasks) 2-hrs/mtg Two meetings to discuss Drafts and Final WTP Infrastructure Renewal Strategy One 2-hrs One 2-hrs One (1) meeting prior to City Council hearing 2 -hrs One (1) meeting at City Council (in-person) for approval of the WTP Infrastructure Renewal Strategy 2-hrs 1.3 Health and Safety Plan KJ will prepare a Health and Safety Plan for work at the facility as described in subsequent tasks. The Plan will include requirements from the City’s confined space entry program. KJ assumes there will be no confined space entry rescue service required and the local fire department will perform this action if needed. Page 80 of 165 Kennedy Jenks | IRS Scope of Work 3 CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE RENEWAL STRATEGY - 2023 KENNEDY/JENKS CONSULTANTS, INC. 1.4 Quality Assurance/Quality Control (QA/QC) KJ will provide the services of senior-level staff persons with applicable experience to conduct technical reviews of project deliverables prior to submittal to the City. Task 1 Assumptions • Meetings will be held in person or virtual as outlined in Task 1.2 • Thirteen (13) monthly invoices and progress reports are assumed to be submitted over the duration of the project. • Twelve (12) project management monthly meetings at ½ hour per meeting. Task 2: Baseline Inventory and Data This task is focused on the Identify Phase of the project, including data collection, identification of assets, and understanding of water sources. This task includes becoming familiar with the WTP including past, current, and planned capital improvement projects, and existing infrastructure planning documents. 2.1 Data Collection & Review KJ will collect information and visit City facilities to understand City processes and management needs. This task includes developing an initial data request list, prioritizing data needs, and tracking receipt of information. KJ will develop a data request. This request will be reviewed by MKN, who will provide available documents from previous work with the City. Only the remaining required documents will be requested from the City. KJ will review provided documents and data, and identify any additional information needed to complete the baseline inventory, audit, and associated data analysis to inform the WTP Infrastructure Renewal Strategy. This data will include but not be limited to as-built PIDs, Civil Drawings, Mechanical Layouts, Electrical and Instrumentation, CMMS maintenance history, SCADA alarm history, past condition assessment reports, asset management related reports, source water quality historic data, projected water demands, reports related to treatment optimization/improvements, and staffing studies. 2.2 Asset Identification, Inventory, & TM The Project Team will review the existing WTP asset inventory, consult with Staff, and conduct a high-level audit to determine if there are any assets that are not currently identified. KJ will develop an asset registry that includes all critical assets that will be on risk-based field inspections checklist. Asset attribute data includes but is not limited to: location ID, parent location, asset location description, equipment description, criticality rating, make, model, estimated install date, estimated install cost, etc. KJ will close data gaps for up to 300 asset locations. KJ, with the support of MKN, will develop a draft and final Technical Memorandum that summarizes the City’s available data and identify key data gaps. This TM will also include a system-level asset registry that will be used to document the staff interviews and will be the basis to document mitigation at the system level. 2.3 Staff Interviews – Business Risk and Vulnerabilities Analysis Task 1 Deliverables Meeting agendas, minutes, monthly status reports, project schedule, a list of contacts and communications protocol, quality assurance and quality control, and invoices. Page 81 of 165 Kennedy Jenks | IRS Scope of Work 4 CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE RENEWAL STRATEGY - 2023 KENNEDY/JENKS CONSULTANTS, INC. KJ will conduct interviews with key City staff using our Business Risk and Vulnerabilities Analysis (BRVA) to confirm its understanding of the City’s WTP, existing operational issues and opportunities, and primary objectives of the WTP Infrastructure Renewal Strategy. Key Staff interviews will include: 1. Utilities Deputy Director, Water 2. Utilities Deputy Director, Engineering and Planning 3. Water Treatment Plant Supervisor 4. Water Treatment Plant Chief Maintenance Mechanic 5. Water Treatment Plant Chief Operator 6. Water Treatment Plant Operators 7. Information Technology Control Systems Administrator Use the City’s mission statement to develop a risk matrix that includes the but limited to the triple bottom line (safety, regulatory, financial) consequence of failure elements and severity ratings. KJ will facilitate a four-day, 4-hr per day Operational Assessment (BRVA) workshop to interview the City’s most experienced operations and maintenance (O&M) staff. The operational assessment will use a series of process-related questions to determine reasonable system failure modes, failure effects, dominant failure mechanisms, system criticality, operational targets, operator response corrective action, system critical equipment condition history, and O&M ideas that may improve the performance of the system. Document the workshop observations in a Microsoft Excel spreadsheet and Microsoft Power BI dashboard for effective reporting and memorializing O&M knowledge. Conduct one (1) 2-hour remote workshop with the City to review and validate the findings. Based on the outcomes of the Operational Assessment, KJ will gather all relevant data that will assist with the execution of assessing the condition of critical assets. This data will include but not be limited to as-built PIDs, Civil Drawings, Mechanical Layouts, Electrical and Instrumentation, reactive maintenance history, SCADA alarm history, past condition assessment reports and/or asset management related reports. 2.4 Water Data Analysis & TM KJ will compile and analyze source water quality and treatment data from historical data records. This data will be ideally from a historical period of 5 years at a minimum. KJ will use available data such as population projections and demand projections to project daily water demand. This projection will consider the impact of the treatment capacity for the City and Cal Poly. Draft and final Technical Memorandum consisting of compilation and analysis of source water quality, treatment data, and projected daily water demand (including treatment capacity for City and Cal Poly) will be developed. Data evaluation will be done using an MS Power BI dashboard that will allow the KJ/MKN team and City to interact with the data and proposed projections. We assume that we will develop and analyze up to 10 future demand scenarios that could be used moving forward in the lifecycle analysis tool. Task 2 Assumptions • Two (2) staff meetings attended by two (2) KJ/MKN staff with a duration of 2 hours per meeting are assumed. • The City will be responsible for consolidating comments from City staff and providing the consolidated comments to KJ approximately 2 weeks prior to the first TM review meeting. • Two 2-hour TM review meetings are assumed. • Deliverables will be provided with the draft in editable Microsoft Word electronic format and the final memorandum as a PDF file. Page 82 of 165 Kennedy Jenks | IRS Scope of Work 5 CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE RENEWAL STRATEGY - 2023 KENNEDY/JENKS CONSULTANTS, INC. Task 3: Process/Asset Condition Assessment • This task is focused on the Assess Phase of the project, which includes identifying vulnerabilities, operational constraints, and critical assets. 3.1 Condition Assessment Methodology KJ will develop the condition assessment methodology based on the baseline asset inventory list identified in Task 2.2. The assessment will include a review of the future capital projects program and associated budgetary estimates and identify any recommendations for cost adjustments. The assessment methodology is anticipated to be split into two phases consisting of a preliminary condition assessment using a desktop approach (Task 3.3) and then a detailed condition assessment for the most critical and vulnerable assets identified from the BRVA (Task 3.4). 3.2 Preliminary Asset Condition, Criticality & Vulnerability Assessment KJ will conduct a desktop audit on the existing WTP facility, including a process and asset condition assessment. KJ will update the baseline asset inventory, including asset age and estimate of remaining useful life, and complete a likelihood of failure and consequence of failure analysis in collaboration with City Staff. KJ will use the information collected in Task 2 to validate the BRVA via desktop condition assessment and sensitivity analysis. In addition, KJ will initiate a desktop audit that includes WTP facilities and equipment not field inspected and/or as highlighted in the WTP critical and/or large diameter below-grade piping. This assessment will include a risk analysis based on BRVA staff interviews (Task 2.3) and asset inspection (from previous field data, Task 2.1; note that field testing will be done as part Task 3.3) The desktop assessment will identify critical assets that warrant a detailed condition assessment considering criteria identified as most vulnerable. 3.3 Detailed Condition Assessment for High Critical Assets KJ expects that the Preliminary Asset Condition, Criticality & Vulnerability Assessment will identify several assets within the system as being highly critical to operations. If failure of any one of these assets will result in the utility’s inability to meet established Service Level criteria, then it is important to assess their condition and identify if any vulnerable points within the facilities exist. KJ will use criticality and points of system vulnerability to execute risk-based field inspections for the most critical equipment and visually present them for ease of tracking progress as shown in a Field Inspection and Condition Assessment Dashboard. KJ will review and use the inventory spreadsheet, available photos, and as-built drawings to develop a well -thought-out inspection plan and checklist of items. KJ expects to perform condition assessments for up to 15% of the WTP’s asset population of approximately 3,000. Task 2 Deliverables • Agendas and minutes for staff interviews • Review documents and data provided by the City and submit a written request for additional information. • Draft and final Technical Memorandum summarizing the City’s available data and identifying any key data gaps. • Draft and final Technical Memorandum consisting of compilation and analysis of source water quality, treatment data, and projected daily water demand (including treatment capacity for City and Cal Poly). • Baseline Asset Inventory List Page 83 of 165 Kennedy Jenks | IRS Scope of Work 6 CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE RENEWAL STRATEGY - 2023 KENNEDY/JENKS CONSULTANTS, INC. KJ will perform inspections, take 2D and 3D photographs, and take videos for the equipment. KJ will perform visual inspections above-grade, obtain photos and/or videos, such as a pole-mount camera with adequate lighting to take 2D, 3D scans and thermal imagery photos of electromechanical gear. Below-grade and/or confined space facilities will not be included and will be considered optional if the City requires. KJ proposes using an ESRI-based field data collection application, as shown in the figure, as our preferred field inspection tool. KJ will provide the tool to the field teams and integrate it with existing data and assessment information so that this knowledge can be used for field intelligence. The City will receive KJ’s standard condition assessment forms for review and approval. KJ will integrate the condition assessment forms into ARC GIS Survey123 and field reporting dashboards. KJ will test the application for full functionality of the application and provide a demonstration to the City. For the site inspection, KJ will coordinate inspection work around assigned plant staff’s mandatory rest breaks and lunch breaks. KJ will hold daily tailgate meetings with the plant manager and/or supervisor to review inspection progress and the proposed inspection work for the day. KJ will closely coordinate with Operations to maintain a flexible schedule and logistics for the inspection work. KJ will work with plant staff so that our inspections team is accompanied by plant representatives. KJ will notify the City two weeks in advance to arrange inspections based on site location and discipline, and request access and assistance of City staff. KJ will coordinate with Operations to ensure the inspection and its scheduled work do not interfere with the plant operations, material deliveries, regular maintenance activities, or active construction. 3.4 Process and Regulatory Condition Assessments The assessment will include the WTP process capacity and treatment constraints. It also includes a review and summary of existing and likely future regulatory and permit requirements and identify emerging concerns that will inform the WTP Infrastructure Renewal Strategy. This assessment will include the development of a table that summarizes the future regulatory/permit requirements, how likely they are to be implemented, how they might impact the existing system, and potential adaptations that could be made to the system to meet to the regulatory/permit requirements. KJ/MKN will also evaluate how the system may be vulnerable to changes in the climate, including extreme drought/precipitation scenarios. Existing available climate change studies conducted by the City and region will be to evaluate how climate change may impact the existing infrastructure in the future. The project team will develop a list of the assets anticipated to be most impacted by changing climate conditions. KJ/MKN will evaluate the treatment process for future needs to address high TOC, HAA5, and PFAS: The City has researched multiple approaches to addressing these issues, including evaluating process changes such as the addition of post-ozonation and biologically activated carbon. Although adjusting the plant to allow blending of all water sources will assist in improving finished water quality and treatment reliability, additional treatment steps may be needed to address future requirements. The KJ/MKN team will evaluate these and other opportunities to stabilize incoming water quality by evaluating the reconfiguring of the incoming pipes configuration upstream of the ozone contactor, as well as additional treatment (for example, constructing BAC filter beds) if required in the future. KJ/MKN treatment process experts will confirm the constraints of the out of spec media in the current filter trains. Pipe Gallery: The configuration of the pipe gallery introduces significant risk and significant difficulty in O/M. As t Page 84 of 165 Kennedy Jenks | IRS Scope of Work 7 CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE RENEWAL STRATEGY - 2023 KENNEDY/JENKS CONSULTANTS, INC. part of the process and risk evaluation, the KJ/MKN team will consider opportunities to reconfigure or relocate the pipe gallery to reduce risk and to improve O/M. For example, the feasibility of relocating all or portions of the pipe gallery to the existing parking area and expanding the building footprint could be considered. Hydraulic Limitations and Staffing: the City has an allocation of 5,200 AFY from the Nacimiento Water Project. Due to hydraulic limitations in the pipeline, only 4,200 AFY can be received and treated under the current 17- hour operating schedule. As part of the Operations Review, we will evaluate the benefits of alternative operating schedules against competing goals. Using his operations management experience, KJ’s Dana Strahan assist the team with assessing strategic concepts for plant coverage and scheduling. Utilizing Stranded Assets: Another option for addressing hydraulic limitations would be to store Nacimiento Water deliveries during non-operational hours for later treatment. Use of the abandoned clarifier, or the existing Reservoir 2 will be evaluated for this use. We will also evaluate using these facilities in conjunction with a hydro- generation facility. Transfer Pump Station Operation: When Reservoir 2 is relocated to the Cal Poly site in the future, there will be an opportunity to feed the Downtown Zone either from Clearwell 1, or from Reservoir 2/TPS. This would provide the ability to feed the Downtown Zone directly from the High Pressure Zone, adding resiliency to the distribution system. 3.5 Condition Assessment Findings The findings from Tasks 3.2, 3.3, and 3.4 will be summarized in a technical memorandum. A draft and Final Process/Asset Condition Assessment Technical Memorandums addressing each discipline, including Electrical, Mechanical, Civil, Corrosion, Process Engineering, and Architectural, will be provided. KJ will develop a Field Inspection and Condition Assessment Dashboard that provides a summary of the asset condition findings. Findings from the evaluation will also be summarized in a technical memorandum. Task 3 Assumptions • The City will be responsible for consolidating comments from City staff, provide the consolidated comments to KJ approximately 2 weeks prior to the first TM review meeting. • Two 2-hour TM review meetings are assumed. • Detailed field system asset inspections will include a maximum of 3 days with 7 people from the KJ/MKN team. Plant inspections efforts will be led by KJ’s Mackenzie Capaci. • KJ/MKN will conduct Level 1 visual inspections, level 2 desktop performance evaluations. Level 3 extensive equipment aided inspections will not be included. However, if Level 3 inspections are needed, KJ will attain approval from City and recruit the assistance of V&A to execute the comprehensive inspection. • Deliverables will be provided with the draft as an editable Microsoft Word electronic version and the final memorandum as a PDF file. Task 3 Deliverables • Field Inspection & Condition Assessment Dashboard • Draft and Final Process/Asset Condition Assessment Technical Memorandums addressing each discipline, including Electrical, Mechanical, Civil, Corrosion, Process Engineering, and Architectural • Draft and Final Technical Memorandum summarizing key WTP issues and a Regulatory/Code Summary Page 85 of 165 Kennedy Jenks | IRS Scope of Work 8 CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE RENEWAL STRATEGY - 2023 KENNEDY/JENKS CONSULTANTS, INC. Task 4: Prioritization Methodology, Needs, & Alternative Analysis This task is focused on the Risk & Mitigation Phase of the project, which includes the following. 4.1 Project Descriptions KJ/MKN will form the basis of the prioritized strategic renewal projects from the concept mitigation repair, rehabilitation, and replacement strategies developed in Task 3. KJ will address up to 20 concept improvements developed during Task 3. KJ/MKN will evaluate the renewal projects against the City’s core initiatives and basic business case evaluation of the strategic renewal concept. KJ will identify project alternatives at the process system level and include the following: • A ‘do-nothing’ approach where no improvement is applied over the next 10 years. • An O&M-centric approach where minor improvements are made to extend the useful life of the asset without substantial rehab or replacement. • An analysis of several strategic renewal options including minor, to major rehabilitations and replacements. KJ/MKN will work with the City to prioritize up to 12 strategic renewal projects out of the concept mitigation strategies for capital planning, identifying feasible projects for near-, mid-, and long-term solution. KJ/MKN will then prepare summary sheets for these options. KJ/MKN will present these options to the City at one 4-hour workshop to seek guidance on the preferred option(s) to be developed as strategic renewal projects with concept- level cost estimates. 4.2 Needs & Alternatives Analysis KJ will provide a Needs and Alternatives Analysis that: defines WTP facility needs; forecasts asset maintenance and replacement budgetary needs; provides planning-level project descriptions, probable budgetary costs, and cost-to-benefit analysis for proposed alternatives; and identifies recommended prioritization of projects by working with the City to develop an adaptable lifecycle analysis tool. 4.3 Prioritization Methodology In consultation with City Staff, KJ/MKN will develop a phased prioritization methodology that addresses code and regulatory requirements, deferred maintenance, redundancy, pre-emptive asset repair and replacement, and process efficiency improvements by using risk criticality and cost to mitigate. Together, risk criticality and cost will deliver a prioritization mechanism method that could be used as part of the City’s CIP program. KJ/MKN knows that the City values risk-based decision-making and encourages both the Likelihood of Failure (LOF) and Consequence of Failure (COF) in project prioritization. Using concepts of LOF, Effective Age, and Remaining Useful Life, KJ shall prioritize asset renewal strategies. At this stage, KJ/MKN will also include concept-level cost estimates to complete the prioritization mechanism analysis. This methodology allows a risk value to be calculated at the asset and system levels which would be used for project prioritization and prioritized categorization levels. • KJ will prepare three priority levels of prioritized projects. • A Prioritization Meeting is planned to review recommendations with the City for agreement before Page 86 of 165 Kennedy Jenks | IRS Scope of Work 9 CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE RENEWAL STRATEGY - 2023 KENNEDY/JENKS CONSULTANTS, INC. developing associated planning level costs. KJ will develop a Draft and Final Technical Memorandum identifying the prioritization methodology. Task 4 Assumptions • The City will be responsible for consolidating comments from City staff and will provide the consolidated comments to KJ approximately two weeks prior to the first TM review meeting. • Two 2-hour TM review meetings are assumed. • KJ will screen 12 concept mitigation projects for capital improvement planning. • Present project in one 4-hr workshop with select City staff. Deliverables shall be provided with the draft in editable Microsoft Word electronic format and the final memorandum as a PDF file. Task 5: Water Treatment Plant Infrastructure Renewal Strategy This task is focused on the Risk & Mitigation Phase of the project, which includes developing the rehabilitation plan, considering potential future changes including codes & regulations, and estimating the cost of the recommended project. In this task, the team will develop the phased and prioritized infrastructure renewal strategy including addressing existing deficiencies (years 1-5), as well as a medium-term (years 6-10) and long-term capital improvement forecast (beyond 10 years). 5.1 Code, Regulations & Climate Change Impacts In support of the infrastructure renewal strategy, the approach shall address current and future Code and regulations. KJ will develop a list of existing and near-term announced codes and regulations that will impact the rehabilitation plan. This list will include the code, the assets to which it applies, and the potential impact(s). KJ will also evaluate which assets may be most vulnerable to climate change. An evaluation of climate change impacts based on existing studies will be conducted, including a review of the existing climate change studies for the region. 5.2 Development of Infrastructure Renewal Strategy The project team will identify recommended operational/process improvements related to preventative maintenance data input, monitoring, and tracking. 5.3 Cost Estimate for Recommended Projects KJ will provide present costs for recommended projects, including operation and maintenance costs, as well as 5-year and 10-year predicted costs. Cost estimates will be Class 5 conceptual-level opinions of probable construction costs and O&M costs. 5.4 Infrastructure Renewal Strategy TM The project team will develop a Draft and Final Infrastructure Renewal Strategy, with a prioritized capital program. Task 5 Assumptions Task 4 Deliverables • Draft and Final Technical Memorandum identifying the prioritization methodology. • Draft and Final Technical Memorandum identifying Needs and Alternatives Analysis Page 87 of 165 Kennedy Jenks | IRS Scope of Work 10 CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE RENEWAL STRATEGY - 2023 KENNEDY/JENKS CONSULTANTS, INC. • The City will be responsible for consolidating comments from City staff and providing the consolidated comments to KJ approximately 2 weeks prior to the first TM review meeting. • Two 2-hour IRS report review meetings are assumed, one for Draft and one for Final. • Deliverables will be provided in editable Microsoft Word, PDF files with searchable text, all digital files, and graphics. • Assumes 3 administrative drafts, one Public Final, one adopted Final for the Draft & Final Infrastructure Renewal Strategy • Cost estimates will be developed for up to 12 projects. Task 5 Deliverables • 2 Administrative drafts and Public Final Infrastructure Renewal Strategy, with prioritized capital program Page 88 of 165 Proposal Fee Estimate (Assoc. Proj. Costs per Schedule of Charges) CLIENT Name: PROJECT Description: WTP Facility Infrastructure Renewal StrategyProposal/Job Number:B001910*31994 Date: City of San Luis Obispo 6/6/2023January 1, 2023 RatesKJ KJ KJ Sub Sub KJ KJ KJerald tty F, na c S, Phil PC. Classification:AideTotalLaborEscalationAssoc. Proj. CostsMKNHyrdogeneration SMEDon KingSub-MarkupODCsODCs MarkupEng-Sci-9 | David F, GeFEng-Sci-8 |Dawn T, KattDon Barraza Eng-Sci-7 |Josh S, Meredith C, Kyle O, DanS, Ralph S, James BEng-Sci-6 |Janet H, EricSandy S, Mark PEng-Sci-5 |Claudia L, PhEng-Sci-4 |Mackenzie CEng-Sci-3 |Sarah BEng-Sci-2Sr. CAD-TechCAD-TechProject AssistantAdmin. Assist.TotalLaborTotalSubsTotalExpensesTotal Labor + Subs + ExpensesHourly Rate: $320 $305 $285 $260 $240$220 $200 $180 $155 $140 $140 $120 $95 Hours Fees3% $9.74Fees Fees10%Fees10%FeesTask 1 - Project Management1.1 Project Management 6 24 1646 $11,480 $344 $448$3,680$368 $0 $12,272 $4,048 $0 $16,3201.2 Progress Meetings & Presentations 12 1830 $9,330 $280 $292$5,520$552$1,700$170 $9,902 $6,072 $1,870 $17,8441.3 Health & Safety Plan 213 $750 $23 $29 $0 $0 $802 $0 $0 $8021.4 QA/QC 32 3264 $20,000 $600 $623 $0 $0 $21,223 $0 $0 $21,223Phase 1 - Subtotal5076 00000 0001700 143$41,560 $1,247 $1,393 $9,200 $0 $920 $1,700 $170$44,200 $10,120 $1,870 $56,190Task 2 - Baseline Inventory & Data 2.1 Data Collection 481224 $5,300 $159 $234$2,760$276 $0 $5,693 $3,036 $0 $8,7292.2 Asset Identification, Inventory & TM 2 4 8 16 8 442 $9,900 $297$409$4,600$460 $0 $10,606 $5,060 $0 $15,6662.3 Staff Interviews 24 24 2472 $20,760 $623 $701$9,200$920$7,200$720 $22,084 $10,120 $7,920 $40,1242.4 Water Data Analysis TM 6 6 8 24 852 $10,950 $329 $506$1,920$192 $0 $11,785 $2,112 $0 $13,897Phase 2 - Subtotal32 38 8 0 56 0 0 44 0 0 0 12 0 190 $46,910 $1,407 $1,851 $18,480 $0 $1,848 $7,200 $720 $50,168 $20,328 $7,920 $78,416Task 3 - Process/Asset Condition Assessment 3.1 Condition Assessment Methodology 2 4 410 $2,450 $74 $97$2,760$276 $0 $2,621 $3,036 $0 $5,6573.2 Preliminary Asset Condition, Criticality, and Vulnerability Assessment 4 16 1636 $8,580 $257 $351 $0 $0 $9,188 $0 $0 $9,1883.3 Detailed Condition Assessment for High Critical Assets 20 20 2020 620 24130 $31,440 $943 $1,266$9,200$920$16,700$1,670 $33,649 $10,120 $18,370 $62,1393.4 Process and Regulatory Condition Assessments 40 8 40 24112 $30,120 $904 $1,091$8,360$836 $0 $32,114 $9,196 $0 $41,3103.5 Condition Assessment Findings TM 4 8 20 20 32 892 $19,640 $589 $896$1,920$192 $0 $21,125 $2,112 $0 $23,237Phase 3 - Subtotal444220201007020 5600080 380$92,230 $2,767 $3,701$22,240 $0 $2,224$16,700 $1,670 $98,698 $24,464 $18,370 $141,532Task 4 Prioritization Methodology, Needs & Alternative Analysis 4.1 Project Descriptions 2 24 24 2474 $20,560 $617 $721$9,200$920 $0 $21,898 $10,120 $0 $32,0184.2 Needs & Alternatives Analysis 2 8 16 16 2466 $14,760 $443 $643$4,600$460 $0 $15,846 $5,060 $0 $20,9064.3 Prioritization Methodology TM 8 8 12 12 16 16 32104 $24,660 $740 $1,013$3,840$384 $0 $26,413 $4,224 $0 $30,637Phase 4 - Subtotal1240361256320 5600000 244$59,980 $1,799 $2,377$17,640 $0 $1,764 $0 $0$64,156 $19,404 $0 $83,560Task 5 - Water Treatment Plant Infrastructure Renewal Strategy 5.1 Code, Regulations & Climate Change Impacts 4 4 4 4 2440 $10,440$313 $390$4,600$460 $0 $11,143 $5,060 $0 $16,2035.2 Development of Infrastructure Renewal Strategy 16 24 12 16 2492 $23,160 $695 $896$9,200$920 $0 $24,751 $10,120 $0 $34,8715.3 Cost Estimate for Recommended Projects 8 24 1244 $11,560 $347 $429$1,920$192 $0 $12,335 $2,112 $0 $14,4475.4 Infrastructure Renewal Strategy TM 8 12 12 24 2480 $18,700 $561 $779$1,920$192$3,400$340 $20,040 $2,112 $3,740 $25,892Phase 5 - Subtotal2848 42860400 4800000 256$63,860 $1,916 $2,493$17,640 $0 $1,764 $3,400 $340 $68,269 $19,404 $3,740 $91,413All Phases Total166 244 68 60 272 142 20 204 0 0 17 20 0 1213 $304,540 $9,136 $11,815 $85,200 $0 $8,520 $29,000 $2,900 $325,491 $93,720 $31,900 $451,111https://kjcnet.sharepoint.com/sites/CityofSanLuisObispo-WTPFacilityInfrastructureRenewalStrategy/Shared Documents/General/Drafts - Pink Team/SLOProposalFeeEstimate_20230401.xlsm© 2008 Kennedy/Jenks Consultants, Inc.Page 89 of 165 Page 90 of 165 R ______ RESOLUTION NO. _____ (2023 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING WATER FUND UNASSIGNED WORKING CAPITAL FOR PREPARATION OF THE WATER TREATMENT PLANT FACILITY INFRASTRUCTURE RENEWAL STRATEGY PLAN WHEREAS, the City Water Treatment Plant does not currently have a comprehensive asset management plan to guide the maintenance and replacement of plant infrastructure, and development and adoption of an Infrastructure Renewal Strategy Plan (Project) will facilitate asset maintenance and replacement prioritization, process optimizations, compliance with future regulatory conditions, and more refined capital improvement planning and associated budgeting; and WHEREAS, the Project includes an assessment of future water quality regulatory and permit requirements and treatment processes to address emerging contaminants, how these requirements would affect operation of the W ater Treatment Plant, and recommendations for adaptations and process changes , and includes an evaluation of vulnerabilities to changing climate conditions such as extreme drought periods and high precipitation events, which will allow the City to best prepare and plan for the future and minimize unknowns that could result in expensive reactionary capital projects, unanticipated increases in operating costs, or operational interruptions ; and WHEREAS, the Project is anticipated to facilitate future grant opportunities, particularly related to climate change resiliency and adaptation, hazard mitigation, and energy conservation and resiliency; and WHEREAS, the Water Treatment Plant Infrastructure Renewal Strategy (Project) is consistent with the City adopted General Plan Water and Wastewater Element (WWE) Goals A 2.1 and A 3.1 because developing a plan for the maintenance and optimization of the Water Treatment Plant is necessary to ensure a long -term, reliable water supply and manage the City’s water resources to meet both current and future water demand associated with development envisioned by the General Plan; and WHEREAS, the Project was included in the 2021 -23 Financial Plan and 2021-23 Financial Plan Supplement with an identified budget of $150,000; and WHEREAS, on January 17, 2023, the Project was included on the City Council agenda and the City Council approved the Request for Proposals (RFP) for the preparation of the Project, authorized staff to advertise the Project for proposals and bids; and authorized the City Manager to award the contract for the Project if the bid is within available project funding of $150,000; and Page 91 of 165 Resolution No. _____ (2023 Series) Page 2 R ______ WHEREAS, City staff released the RFP on February 10, 2023 and conducted a pre-proposal meeting and WTP facility tour for interested consultants on February 27, 2023, and proposals were opened on April 6, 2023; and WHEREAS, based on review of submitted proposals and review of the top qualified consultant’s Project cost estimate by a technical review panel comprised of City staff, the original appropriation of $150,000 has been found to be inadequate to fund the scope of work necessary to fully evaluate the WTP and associated assets, identify realistic risks and opportunities for adaptation and resiliency, and develop a strategic plan that is based on sound data, independent analysis, and anticipation of future needs for the City and future anticipated regulatory compliance requirements; and WHEREAS, the total Project cost is estimated at $451,111, requiring an additional $301,111 to complete the Project and ensure smooth transitions through the audit, assessment, evaluation, planning, and documentation processes; and WHEREAS, a balance of over $9 million is available from the Water Fund Unassigned Working Capital to fund the Project. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Page 92 of 165 Resolution No. _____ (2023 Series) Page 3 R ______ SECTION 1. Budget. The budget of $301,111 will be moved to the Water Treatment Plant Infrastructure Renewal Strategy Plan to enable strategic and capital planning for an essential and critical City facility. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 20 23. ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 93 of 165 Page 94 of 165