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HomeMy WebLinkAbout03.g. Amend agmt. w/Federal Advocates to lobby for federal fundingCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS 3.5. POSITION PAPER Board Meeting Date: May 5, 2011 Subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING AGREEMENT WITH FEDERAL ADVOCATES TO LOBBY FOR FEDERAL FUNDING FOR THE CONTRA COSTA COUNTY REFINERY RECYCLED WATER PROJECT Submitted By: Initiating Dept. /Div.: Don Berger, Associate Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDS FOR BOARD ACTION: Ber r C. Swanson A. Farrell ames M. Kelly General Manager ISSUE: Board of Directors' authorization is required for the General Manager to amend an existing professional services agreement in an amount greater than $50,000. RECOMMENDATION: Authorize the General Manager to execute an amendment to increase the cost ceiling of an existing Professional Services Agreement with Federal Advocates in the amount of $60,000 from $33,000 to $93,000 for the Contra Costa County Refinery Recycled Water Project. FINANCIAL IMPACTS: The additive cost of this amendment is $60,000. ALTERNATIVES /CONSIDERATIONS: An alternative would be to conduct this work with in -house staff. However, this work requires specialized expertise, which is not available at the District. Another alternative would be to not continue with lobbying efforts, but this would reduce the chances for obtaining federal funding assistance and is not recommended. BACKGROUND: The Shell and Tesoro refineries provide an excellent opportunity to use large amounts of recycled water on a year -round basis. The proposed Contra Costa County Refinery Recycled Water Project would provide up to 20 million gallons per day of recycled water to the refineries for use in cooling towers and as boiler feedwater. The estimated cost of this project is $100M, and the District needs outside funding assistance to make the project cost- effective. The federal Water Resources Development Act (WRDA) provides a mechanism to obtain up to 75% of project costs ($75M) and is the best potential funding opportunity that has been identified. To obtain WRDA funding, Congress must first pass a bill to authorize a project to provide the legal authority to later appropriate funds for that project. A separate appropriations bill must later be passed to actually provide the funds. WENVRSEMPosition Papers\Berger\201 1 \Amend Agreement with Federal Advocates 5- 5- 11.doc POSITION PAPER Board Meeting Date: May 5, 2011 subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING AGREEMENT WITH FEDERAL ADVOCATES TO LOBBY FOR FEDERAL FUNDING FOR THE CONTRA COSTA COUNTY REFINERY RECYCLED WATER PROJECT At the November 3, 2010, Board Recycled Water Committee meeting, the Committee concurred with staff's recommendation to pursue federal funding assistance through WRDA and retain the lobbying firm of Federal Advocates to assist with these efforts. On December 1, 2010, the District entered into a six month agreement with Federal Advocates to represent the District in efforts to have the refinery project included in an omnibus WRDA reauthorization bill that could be enacted later this year. The amount of this agreement was within staff authority. Federal Advocates has been successful in helping the District navigate the legislative process and obtain the interest of our federal legislators to potentially authorize the project for funding. At the April 5, 2011, Board Recycled Water Committee meeting, the Committee recommended that the Board approve a 12 month extension of the lobbying agreement with Federal Advocates at a cost of $5,000 per month for a total amendment of $60,000. At the April 7, 2011, Board Meeting, this matter was discussed and it was agreed that staff should continue pursuing WRDA funding. Federal Advocates will initially focus on obtaining an authorization, and once that is obtained, lobbying efforts will focus on securing appropriations. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an amendment to increase the cost ceiling of an existing Professional Services Agreement with Federal Advocates in the amount of $60,000 from $33,000 to $93,000 for the Contra Costa County Refinery Recycled Water Project. WENVRSEC \Position Papers\Berger\201 1 \Amend Agreement with Federal Advocates 5- 5- 11.doc