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Home My WebLink About11/21/1989, 4 - AMENDMENT NO. 3 WWMP, PROJECT REPORT SUPPLEMENT PREPARATION FOR WASTEWATER FACILITIES IMPROVEMENTS. MEETING DATE: City Of San IDIS OBISPO movembior 21 . 19R9 COUNCIL AGENDA REPORT MM NUMBER: FROM: William T. Hetland �� Prepared by: John E. Moss Utilities Director Wastewater Division Manage SUBJECT: Amendment No. 3 WWMP, Project Report Supplement Preparation for Wastewater Facilities Improvements. CAO RECOMMENDATION: Council Adopt resolution approving Amendment No. 3 to Engineering Services for implementation of the wastewater Management Plan - preparation of a Project Report Supplement for Wastewater Facilities Improvements. BACKGROUND: Summary: The City is seeking funding assistance from the State Water Resources Control Board, Division of Loans and Grants, for the required Wastewater Facilities Improvements project _ in the form of low interest State Revolving Fund loans. This loan money is conditional upon State water Resources Control Board approval of the project. In order to obtain approval C� of the loan the State is requiring the submittal of a Project Report Supplement that "in sufficient detail" describes the project and insures compliance. with all applicable State and Federal regulations. Staff recommends retaining Brown & Caldwell to prepare the project request supplement. Discussion: The City's wastewater treatment facilities have been unable to consistently meet the discharge requirements imposed by the Regional Water Quality Control Board. In addition to this, the wastewater collection system experiences high flow rates and overflows during winter storm periods. On October 28, 1986, the city retained Brown and Caldwell Engineers to prepare the Wastewater Management Plan (WWMP) . The purpose of the plan was to identify needed improvements to the City's wastewater treatment and. collection facilities to meet all discharge requirements and- treat expected future flows to the year 2015. Upon completion of the WWMP staff has worked closely with Brown and Caldwell in review, selection, and design of needed improvements. RECEIVED NOV 1 4 1989 /o:SOA �— l CITY CLERK SAN LUIS 0915r10.CA 11111111111114111 city of san «is oBispo COUNCIL AGENDA REPORT Project Report Supplement Meeting of November 21, 1989 Page 2 In May of 1989 the City submitted documentation to the State, Division of Loans and Grants, seeking low interest loan assistance for the needed facilities improvements. These loan monies are capitalized in part by federal funds authorized under the Federal Clean Water Act. The interest rate is approximately 4% and the City is seeking a total loan amount of approximately $30 million. The other remaining funding option would be through a municipal bond program at an interest rate of approximately 8.5%. An increase in sewer rates will be required to pay back either option with a substantially greater increase required to pay off the municipal bond option. The State has subsequently responded to the application for loan funding and has identified needed documentation on the project for compliance with State and Federal requirements. The State has requested the City prepare a single Project Report Supplement that "in sufficient detail" accurately describes the project and addresses the various key elements as required by State and Federal guidelines. Staff has also been negotiating with the State Regional Water Quality Control Board, the final terms of a consent decree. The consent decree in essence provides protection for both the City and the State for the duration of the improvements project. The City is afforded protection from significant fines from the State for those violations of the discharge requirements which the City is attempting to address in the improvement project. The State is afforded protection in the sense that the consent decree provides the City with a legally binding schedule for making the needed improvements and meeting discharge requirements. The schedule in the consent decree is closely linked with the time line for obtaining State Revolving Fund Loan approval. This makes timely and complete preparation of the Project Report Supplement essential in order to avoid funding delays which may result in noncompliance with the schedule provided in the consent decree. It is for this reason as well as the detailed nature of the document that staff recommends entering into agreement with Brown and Caldwell for preparation of the Project Report Supplement. I• m � ii�►I�Ill�pa�ui��l city of san tuts OBlspo - i COUNCIL AGENDA REPORT Project Report Supplement Meeting of November 21, 1989 Page 3 ALTERNATIVES: Option 1. Adopt resolution authorizing Brown and Caldwell to prepare the Project Report Supplement. This would result in timely and complete preparation of the document and would greatly assist the City in obtaining State loan funding. Option 2. Direct staff to prepare the Project Report Supplement. This would reduce overall contract expenditures, Project Report Supplement however , this would also require a significant amount of staff time. Timely and complete preparation of this document is esential for obtaining funding approval without significant delays. The detailed information required could be more adequately be addressed by the consultant. Option 3. Direct staff to fund the project through municipal bonds. This would not require document preparation for meeting State loan application requirements. The projected interest rate for municipal bond funding is approximately 8. 5% versus 4% for the State loan. Over the long term this option would drastically increase the cost of the project to the City and would result in a significantly higher rate increase to the users. Option 4. Take no action. Delays in obtaining funding will result in delaying project completion and compliance with State discharge requirements. This may also result in not meeting critical time schedule dates as detailed in the consent decree which would result in stipulated penalties from the State. FISCAL IMPACT: Brown and Caldwell proposes to prepare the Project Report Supplement at a cost to the City of $40, 000. Long term fiscal impact would be a significant savings to the City in the form of lower interest rate financing being secured from the State, as well as avoidance of stipulated penalties from the State for noncompliance with critical dates established in the consent decree. Money is available in the sewer fund to cover these expenditures. �-3 ►►�n��r,NI�II�III�pI�DI city of san gats oBispo WWGW COUNCIL AGENOA REPORT Meeting of November 21, 1989 Page 4 RECOMMENDATION: Adopt resolution approving Amendment No. 3 to the WWMP :for preparation of the Project Report Supplement for Wastewater Facilities Improvements by Brown and. Caldwell Engineers. ATTACHMENT : Resolution carpr/moss I . i RESOLUTION NO. (1989 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING AMENDMENT NO. 3 TO THE WASTEWATER MANAGEMENT PLAN WHEREAS, the City has adopted a Wastewater Management Plan; WHEREAS, the. City has applied for a State low-interest loan for funding of the facilities improvements projects, for implementation of the Wastewater Management Plan; WHEREAS, the State requires preparation of a 'Project Report Supplement for a facilities plan and loan approval for all projects applying for State funds. NOW THEREFORE, BE IT RESOLVED that the City Council approve Amendment No. 3 to the Wastewater Management Plan for Engineering Services of Brown and Caldwell Engineers for preparation of a Project Report Supplement. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this day of , 1989. MAYOR RON DUNIN ATTEST: CITY CLERK PAM VOLES Resolution No. (1989 Series) Page Two APPROVED: City dministrative Officer City At ey Finance Director W �-�0-- Utilities Director resno3/moss MEETING AGENDA DATE a/ Py ITEM # *Denotes action by Lead Person Rssiwnd by* u AMENDMENT NO. 3 P oAO C ao TO City Atty. AGREEMENT FOR ENGINEERING SERVICES .�g BETWEEN CITY OF SAN LUIS OBISPO AND BROWN AND CALDWELL FOR IMPLEMENTATION OF WASTEWATER MANAGEMENT PLA`. THIS AMENDMENT NO. 3 to the Engineering Services Agreement dated February 23 , 1988 , between City of San Luis Obispo , hereinafter referred to as "Owner" , and Brown and Caldwell , a California corporation, hereinafter referred to as "Engineer, " is made and entered into this day of November 1989 . WITNESSETH: WHEREAS , on February 23 , 1988 , Owner and Engineer entered into an agreement for engineering services; and WHEREAS, in Article IIB of said Agreement , Owner and Engineer agreed that certain of the work contemplated to be performed by Engineer could not be sufficiently defined at the time of execution of the Agreement; and WHEREAS , during the detailed engineering design of the improve- ments , it became apparent that additional facilities were required to comply with the receiving water requirements ; and WHEREAS , Owner has requested Engineer to prepare a Project Report in accordance with the State Water Resources Control Board (SWRCBJ policy for implementing the State Revolving Fund (SRF) for construction of wastewater treatment facilities. WHEREAS , Owner has requested changes in the scope of work; NOW THEREFORE, Owner and Engineer agree to amend the Agreement as follows: I . SCOPE OF PLANNED ENGINEERING SERVICES The scope of planned engineering services as described in Exhibit B of the original Agreement is amended to provide the following additional engineering services : RECEIVE® C' NOV 1 51989 Page 1 of 2 N/AGR:SLO-A3 CITY CLERK SAN LUIS OBM,CA C1 . Prepare a Project Report in accordance with the requirements outlined on Pages 6 through 8 of the SWRCB "Policy for Implementing the SRF for Construction of Wastewater Treatment Facilities , August .18 , 1988" . 2 . Submit five copies of the draft Project Report to the City and SWRCB for their review and comments . Incorporate review comments and submit ten copies of the final Project Report to the City. IV. SCHEDULE Engineer was authorized to proceed with the modified scope of work effective on November 13 , 1989. The modified scope of work shall be completed by January 31 , 1990 . IV. COMPENSATION .Compensation for the services provided under Article I of this Amendment shall be calculated on the same basis as in the original Agreement . The cost ceiling for the work done under this Amendment is $35 ,500 which increases the total cost ceiling under the Agreement to $1 ;271 ;525. The fixed professional fee for the work done under this Amendment is $4 ,500 which increases the total, fixed professional fee to $153 ,820 . All other terms and conditions of the Agreement dated February 23 , 1988 remain unchanged. BROWN AND CALL ELL OWNER. i Signature Signature Printed Name Pe_rvaiz Anwar Printed name Title Vice President Title Date ( Date Page 2 of 2 N/AGR:SLO-A3 .TING AGENDA . DATE 11-2141 ITEM # C �i►Ild III I II III III ,��Illl�l�ll II II II I�� ClNor SAn WIS OBISPO � 955 Morro Street • San Luis Obispo, CA 93401 'ehoies action by Lead Person November 20, 1989 F by jb/�Gbquncll 2iy Atty. c7- MEMORANDUM /LE �f/ETL4�� TO: City Council VIA: John Dunn, City Administrative Officer FROM: William T. Hetland, Utilities Director /+hd- SUBJECT: Cost Estimate-Amendment No. -3 Enclosed for your review is the cost estimate amendment No. 3 (tel justification. The additional 40, 000 dollars requested has been identified on page two. If you have any questions or comments please do not hesitate to contact me. RECEIVED Enclosures NOV 2 1 1989 CITY CLERK SAN LUIS OBISPO,CA BROWN AND CALDWELL -- CONSULTING ENGINEERS November 16, 1989 Mr. William Hetland Utilites Director City of San Luis Obispo Post Office Box 8100 San Luis Obispo, California 93404-8100 12-3797-01/1 Subject: Cost Estimate - Amendment No. 3 Dear Mr. Hetland: Attached for your information is a breakdown of the $40, 000 budget identified in Amendment No. 3 to our Agreement for engineering services for implementation of Wastewater Management Plan. This amendment authorizes professional engineering services to prepare C , the Project Report required by the State Water Resources Control Board (SWRCB) to support the City ' s State Revolving Fund application. The breakdown is our best estimate at this time: As discussed, we will try to complete the project below budget. It would also be a good idea to see if the SWRCB would consider relaxing some of their rigid requirements for this document. We will discuss this aspect with Mr. Eric Torguson and try to find ways to reduce the estimated level of effort. Please call us if you should have further questions regarding cur fee estimate. Ve truly urs, B� N AND DWELL P rvaiz Anwar Vice President PA:MS C' Enclosure cc: Azee Malik, Brown and Caldweli 150 SOUTH ARROYO PARKWAY POST OFFICE 8M 7= PASADENA.CALIFORNIA 91109-7203•(818)577-1020•FAX:(818)795.6816 i E :SLOPR 15-Nov-89 SAN LUIS OBISPO PROJECT REPORT COST ESTIMATE MANHOURS TASK DESCRIPTION PROFESSIONAL TECHNICAL 01 REVIEW EXISTING DOCUMENTS 40 02 EDIT EXISTING DOCUMENTS FOR 48 INCLUSION • IN PROJECT REPORT 03 DEVELOP NEW SECTIONS OF PROJECT REPORT (NOT PREVIOUSLY COVERED) Sludge Disposal 24 Reduce Use or Recover 12 Energy Evaluation of Revenue 12 Producing Facilities Open Space Evaluation 12 Eligible Capacity 20 Description of BPWTT 12 Costs , Including User Costs 20 04 UPDATE I/I WORK 32 05 PROJECT DESCRIPTION (NOT PREVIOUSLY COVERED) Energy Requirements 20 0 & M , Requirements 20 Public Participation Summary 12 06 PREPARE DRAFT PROJECT REPORT 24 40 60 07 PREPARE FINAL PROJECT REPORT 40 10 20 TOTAL, MANHOURS 348 50 80 COST SUMMARY Total Labor wi/ markup 35 , 005 Other Direct Costs 4 , 500 Profit 500 Project Total Cost $40 , 005