June 13, 2006
SUBJECT: Amendment of Agreement for Program Management Services Between the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP) and Eisenberg, Olivieri and Associates (EOA, Inc.)
REPORT IN BRIEF
The City of Sunnyvale is one of 15 members of the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP). SCVURPPP was formed to jointly negotiate and implement the National Pollution Discharge Elimination System (NPDES) permits issued to the cities, County, and Santa Clara Valley Water District who discharge storm water to the San Francisco Bay. SCVURPPP also provides a forum to best address storm water issues, which tend to be regional in nature. These 15 agencies have signed a Memorandum of Agreement (MOA) and pay annual assessments to cover the cost of programmatic activities related to implementing the NPDES permits.
The MOA provides for the selection of one of the members as the Program’s Contracting and Fiscal Agent. In June 2005, the City accepted the nomination to serve as the Contracting and Fiscal Agent, subject to reimbursement from SCVURPPP of all incurred costs.
One of the duties of the Contracting and Fiscal Agent is to execute the contract for Program Management services. At its regular meeting on February 16, 2006, the SCVURPPP Management Committee voted to extend the existing contract for Program Management services with Eisenberg, Olivieri and Associates (EOA, Inc.), until such time as a new storm water permit is in place, and to pursue a process to review the contract for program management services at that time.
Approval of an extension to the existing EOA, Inc. contract for Program Management services is being brought forward for Council approval at this time.
BACKGROUND
In May 1990, Council approved the MOA that implemented the Santa Clara Valley Nonpoint Source Pollution Control Program. The MOA joined the City of Sunnyvale with twelve other cities in Santa Clara County, plus the County and the Santa Clara Valley Water District together as co-permittees, allowing these entities to jointly apply for and implement their NPDES storm water permits, which are issued and enforced by the Regional Water Quality Control Board (RWQCB). As a result of this approach, the permit for each agency is the same. The MOA has been amended twice to extend the term, and is currently extended to one year beyond the termination of the next NPDES permits, including any administrative extension of the next permits. Members of SCVURPPP (including the City of Sunnyvale) jointly submitted a reapplication for new Storm Water NPDES Permits in February 2005. Discussion and negotiation with the RWQCB regarding the language of these permits is ongoing.
In order to assist the 15 agencies of SCVURPPP with complying with provisions of the existing NPDES permits, and to assist with negotiating permits that are considered by the agencies to be effective at addressing urban runoff pollution and reasonable to implement, SCVURPPP contracts for professional program management and technical assistance services with a firm that possesses specialized expertise in the area of urban runoff pollution prevention. These services, as well as other costs of the Program, are funded through annual assessments paid by each of the participating agencies.
The contract for professional program management services is currently held by EOA, Inc. for a term of five years and a total contract price not to exceed $13,080,918. This agreement is set to expire on June 30, 2006.
At its regular meeting on February 16, 2006, the Management Committee of SCVURPPP voted to extend the current agreement for program management services, until such time as a new permit is in place, and to pursue a process for reviewing the contract for program management services at that time. The Management Committee was in agreement that it would not be prudent to pursue a new Program Manager while negotiations related to the new permits are ongoing. The current Program Manager has been very involved in the work on the new permits and is intimately familiar with the needs of the 15 agencies applying for the new permits. It is estimated that permit negotiations will be complete by April 2007. However, to insure the presence of program management services throughout the negotiations and subsequent review of the contract for program management services, the existing five year agreement with EOA is proposed to be extended two years until June 30, 2008. It is further proposed that the not to exceed contract price be amended so that total fees for all services including expenses and payments to sub consultants shall not exceed $2,800,000 for fiscal year 2006-2007, and $2,900,000 for fiscal year FY 2007-2008 for a total not to exceed contract amount of $18,780,918.
EXISTING POLICY
Surface Runoff Sub-Element Policy 3.4, A.1 supports the City’s continued participation in SCVURPPP to identify and develop Best Management Practices to assure the reasonable protection of beneficial uses of creeks and San Francisco Bay, as established in the Regional Board’s Basin Plan and to protect environmentally sensitive areas.
Surface Runoff Sub-Element Policy 3.4, A.2 also states that the City will comply with regulatory requirements and participate in processes that may result in modifications to those requirements.
DISCUSSION
The City of Sunnyvale adopted a motion to accept the nomination as Contracting and Fiscal Agent for SCVURPPP on June 14, 2005. On February 16, 2006, the Management Committee passed a resolution stating its desire to extend the term of the contract with the existing contract Program Manager, EOA, Inc. Executing the contract extension with EOA, Inc. would be in conformance with the City’s role as Contract and Fiscal Agent and would fulfill the intent of the Management Committee’s resolution.
Management Committee members have agreed that it would be most prudent to continue services with EOA, Inc. at this time because NPDES permit discussions and negotiations are currently underway and EOA, Inc. is intimately familiar with the storm water issues facing the communities of the South San Francisco Bay. Undertaking efforts at this time to select a new contract Program Manager would be disruptive at a minimum and likely detrimental to ongoing efforts related to the permit.
FISCAL IMPACT
Costs of the program management contract are included in the annual budget for SCVURPPP, for which assessments are collected from all participating SCVURPPP members. For Council’s information, Sunnyvale’s share of the SCVURPPP assessment is budgeted in the annual operating budget for the Water Pollution Control Plant, and the extension will pose no additional fiscal impact to the City of Sunnyvale beyond the budgeted amount due, which is estimated for the 2006/07 fiscal year to be $245,163 (an assessment by SCVURPPP of $226,647, plus a pro-rata share of total permit fees, calculated to be approximately $18,516).
Conclusion
In the City’s role as Contracting and Fiscal Agent for SCVURPPP, it is appropriate for the City to execute the extension to the Program Management contract in keeping with the direction of the Management Committee. It is in the City’s interests and SCVURPPP’s interests to maintain the contract with the current program manager, EOA, INC., at this time, while permit discussions and negotiations are ongoing.
PUBLIC CONTACT
Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s Web page, and the availability of the report in the Library and City Clerk’s Office.
ALTERNATIVES
1. Approve an extension of contract agreement with the program management contractor, EOA, Inc. through June 30, 2008, with a modified not to exceed price of $2,800,000 for fiscal year 2006-2007, and $2,900,000 for fiscal year FY 2007-2008 for a total not to exceed contract amount of $18,780,918.
2. Take no action.
RECOMMENDATION
Staff recommends Alternative 1 to approve an extension of the contract with the program management contractor, EOA, Inc.
Prepared by:
Timothy J. Kirby
Revenue Systems Supervisor
Reviewed by:
Mary J. Bradley Director
Director of Finance
Reviewed by:
Marvin A. Rose
Director of Public Works
Approved by:
Amy Chan
City Manager
Attachments
A. Consultant Services Agreement between the City of Sunnyvale, as SCVURPP contracting and fiscal agent, and EOA, Inc. for program management services (.pdf)
B. Exhibits A, B, and C to Consultant Services Agreement (.pdf)