HomeMy WebLinkAbout05.g. Authorize amendment to agreement with Federal AdvocatesCentral Contra. Costa Sanitary District
' BOARD OF DIRECTORS •9
POSITION PAPER
Board Meeting Date: September 20, 2012
Subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING
AGREEMENT WITH FEDERAL ADVOCATES TO ADVOCATE 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 RECOMMENDED FOR BOARD ACTION:
D. Berger M. Penny
/ J
J. Mitamoh Mills Kenton L. Alm
nn E. Farrell
General Manager
ISSUE: Board of Directors authorization is required for the General Manager to amend
an existing professional services agreement where the resulting cost ceiling will be
amount greater than $100,000.
RECOMMENDATION: Authorize the General Manager to execute an amendment to
increase the cost ceiling of an existing Professional Services Agreement with Federal
Advocates by $30,000 from $100,000 to $130,000 for the Contra Costa County
Refinery Recycled Water Project.
FINANCIAL IMPACTS: The additive cost of this amendment is $30,000.
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 is to continue advocacy efforts, but this
would reduce the chances for obtaining federal funding assistance and is not
recommended.
BACKGROUND: Nonpotable water demand at 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 feed water. The estimated cost of this project is $100 million, and the
District needs outside funding assistance to make the project cost - effective.
The District has an agreement with the Washington D.C. -based advocacy firm of
Federal Advocates to assist in obtaining federal grant funding for the Refinery Project.
The focus of Federal Advocates' efforts has been on the inclusion of the Refinery
Project in the reauthorization of the Water Resources Development Act (WRDA), which
could provide grant funding for up to $75 million, or 75% of the project costs. Federal
POSITION PAPER
Board Meeting Date: September 20, 2012
subject. AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING
AGREEMENT WITH FEDERAL ADVOCATES TO ADVOCATE FOR FEDERAL
FUNDING FOR THE CONTRA COSTA COUNTY REFINERY RECYCLED WATER
PROJECT
Advocates has been successful in helping the District navigate the legislative process
and encouraging federal legislators to consider the project for WRDA funding. Other
local agencies have been able to obtain large amounts of grant funding through WRDA
for their recycled water projects, such as the East Bay Municipal Utility District, which
previously obtained approximately $40 million in WRDA funding, which included a
programmatic authorization for their recycled water program.
We are currently at a critical milestone in the WRDA reauthorization process. The last
WRDA reauthorization bill was enacted in 2007, and Congress typically reauthorizes
funding for WRDA every five to six years. In addition, legislative action is expected to
increase after the November election, and budget deliberations may provide an
opportunity for recycled water funding.
At the June 14, 2012, Board Recycled Water Committee meeting, the Committee
concurred with staff's recommendation to extend the agreement with Federal
Advocates through the first quarter of 2013, after which the continuation of the
agreement can be reassessed. The existing agreement was initiated in December
2010 and will expire on September 30, 2012. The current cost ceiling for the
agreement is $100,000. The agreement would be extended until March 31, 2013, at a
cost of $5,000 per month for a total budget increase of $30,000.
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 by $30,000 from $100,000 to $130,000 for the Contra Costa
County Refinery Recycled Water Project.
N: \ENVRSEC \Position Papers \Berger\2012 \9 -20 -12 \Federal Advocates Sept 20 2012 r2.doc