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HomeMy WebLinkAbout03.f. Approve amendment to agreement with Federal AdvocatesCentral Contra Costa Sanitary District ' 3.T. BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 11, 2013 Subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING AGREEMENT WITH FEDERAL ADVOCATES TO ADVOCATE FOR FEDERAL GRANT FUNDING FOR THE REFINERY RECYCLED WATER PROJECT, DISTRICT PROJECT 7300 Submitted By. Initiating Dept. /Div.: Don Berger, Associate Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Lawson — Senior Engineer o D. Gemmell — Environmental Services Division Manager C. Swanson Provisional General Manager ISSUE: Authorization from the Board of Directors is required for the General Manager to amend an existing professional services agreement beyond staff authority limits. RECOMMENDATION: Authorize the General Manager to amend an existing Professional Services Agreement with Federal Advocates from $149,500 to $179,500 to continue advocacy efforts to obtain federal grant funding for the Refinery Recycled Water Project, District Project 7300. FINANCIAL IMPACTS: The additive cost of this amendment is $30,000. ALTERNATIVES /CONSIDERATIONS: An alternative is to conduct this work with in- house staff. However, this work requires specialized expertise, which is not available at the District. A second alternative is to discontinue advocacy efforts, but this would reduce the chances for obtaining federal grant funding assistance and is not recommended. BACKGROUND: 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% of project costs. The cost of the full scale refinery project (20 MGD of recycled water) is currently estimated to be approximately $85 million, and WRDA could potentially provide a very significant amount of grant funding for this project. Federal 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, C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Fed Advocates Agreement 7 -11 -13 Final.doc Page 1 of 2 POSITION PAPER Board Meeting Date: July 11, 2013 subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING AGREEMENT WITH FEDERAL ADVOCATES TO ADVOCATE FOR FEDERAL GRANT FUNDING FOR THE REFINERY RECYCLED WATER PROJECT, DISTRICT PROJECT 7300 which previously obtained approximately $40 million in WRDA funding, which included a programmatic authorization for their recycled water program. With the potential of future nutrient removal requirements for the District's treatment plant, the Refinery Project could be a way for the District to reduce its nutrient discharge to Suisun Bay. If the District is successful in obtaining WRDA funding assistance, the District's costs to comply with potential nutrient removal requirements could be significantly reduced. The District is 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. On May 15, 2013, the Senate passed its version of WRDA. The House of Representatives is currently drafting its bill. The legislative process in the House is expected to continue through the summer. Influencing the outcome of that effort will be critical in ensuring inclusion of language that will authorize funding for the Refinery project. During this timeframe, advocacy efforts will include briefing key congressional members and staff on the project and urging inclusion of the Refinery Project in the bill. Following House action, it is expected that conference on the bill between House and Senate committees will occur sometime in September /October. Those deliberations are anticipated to extend into the late fall, and the District's advocacy efforts will focus on working through Delegation and Committee Members and staff on inclusion of the Refinery Project in the final legislative product. The existing agreement with Federal Advocates was initiated in December 2010 and will expire on July 31, 2013. The current cost ceiling for the agreement is $149,500. The cost ceiling was increased by the Board on September 20, 2012 from $100,000 to $130,000, and by staff in April 2013 to $149,500 under staff's authority limit for contract amendments, which is 15% of the previous Board authorized agreement amount, or $19,500 in this case. The agreement would be extended for six months until January 31, 2014, at a cost of $5,000 per month for a total budget increase of $30,000. COMMITTEE RECOMMENDATION: The Enterprise Committee reviewed this matter at its meeting on June 24, 2013 and recommended its approval at the July 11, 2013 Board meeting. RECOMMENDED BOARD ACTION: Authorize the General Manager to amend an existing Professional Services Agreement with Federal Advocates from $149,500 to $179,500 to continue advocacy efforts to obtain federal grant funding for the Refinery Recycled Water Project, District Project 7300. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Fed Advocates Agreement 7 -11 -13 Final.doc Page 2 of 2