05 - Laserfiche WebLink

BACKGROUND In June 2010, recognizing the benefits recycled water can provide through supply reliability and local control, City Council approved a Recycled Water Surcharge Fee in conjunction with a water rate increase. This funding source was the first step in developing a revenue stream to support the development of the City's Recycled Water Program. More recently, on November 5, 3013, City Council approved the Recycled Water Feasibility Study and authorized staff to move forward with the environmental compliance documents necessary with state and federal governments to move forward and help fund the City's Recycled Water Project. A proposal for CEQA and NEPA environmental consulting services was requested and obtained from SMB Environmental, Inc. which comprehensively covers all aspects of treatment expansion, distribution phasing, and possible recycled water services the City might be interested in offering in the near term and future. The total cost estimated for this professional service is slightly under the $50,000 cost originally estimated by staff for the work. DISCIJSSION Since City Council's November 5th, 2013 action, California's water supply situation has worsened which has led to the Governor's January 17, 2014 declaration of a State of Emergency due to drought conditions. The City Council recognized the Governor's declaration and at its February 4 meeting it adopted a resolution declaring a water shortage implementing Stage 1 of the water shortage contingency plan calling for all water customers to voluntarily reduce water shortage by 20%. As a means of better utilizing water resources and addressing the drought conditions, staff has successfully negotiated the recycled water supply agreements (approved by City Council November 5, 2013) with DSRSD, DERWA and the City of Livermore which will enable it to expand the delivery and usage of recycled water in the community. However, as part of this expanding process, it is necessary for the City to complete additional environmental review regarding the impact of recycled water. As indicated, staff prepared a scope of work for this project but elected to request a proposal from SMB prior to soliciting a competitive bid. This action was based on staff's perspective that SMB's familiarity with our current water supply and recycled water policies would result in a cost effective and timely study. As indicated previously, SMB's fees are consistent with engineering estimates, its proposed services address all aspects of the City's project specifications, and its familiarity with the City will enable it to complete the project expeditiously which is critical for the City to expand its recycled water program in a timely fashion. As such, consistent with the City's Purchaing Procedures Manual, which includes provisions for utilizing a sole sourve provider in lieu of a competitive bidding process, staff is recommending that the agreemnent be awarded to SMB. In the event the City Council determines that it would be more appropriate to engage in a competitive bidding process, staff would circulate the request for bid and report back to the City Council in approximately 90 days. Page 2 of 3