PURPOSE:

To approve a first amendment to a Professional Services Agreement with United Water Services, Inc. (UW) to operate the Burbank Water Reclamation Plant (BWRP), implement the Industrial Pretreatment Program (IPP), and implement the Illicit Stormwater Program (ISP).

BACKGROUND:

In 1990, the City Council approved a three-year agreement with UW (formerly called JMMOSI) to operate the BWRP and implement the IPP. The BWRP is a tertiary wastewater treatment plant that is rated for an average design flow of 9 million gallons of water per day (MGD). The IPP is a United States Environmental Protection Agency (USEPA) mandated program that requires the City to issue and enforce permits to specific industries discharging sewage to the water reclamation plant. 

On July 30, 1991, the City Council passed Resolution No. 23,395, which added services to this contract and extended its term to June 30, 1996.  On June 25, 1996, the City Council extended the contract with UW for an additional five years. 

On June 26, 2001, the City Council passed Resolution No. 26,045, which added the illicit stormwater program and additional laboratory analyses to the contract and extended the contract term to June 30, 2006. 

ANALYSIS:

UW has provided services to the City for the past 15 years to operate and maintain the BWRP and manage and implement the City�s IPP.  During its tenure, UW has provided reliable service to the City while providing safe operation of the BWRP and the IPP.  The proposed six-year agreement would provide continuity of these services.

UW has assembled and developed a competent staff who is able to manage and operate the treatment facility, laboratory and the IPP economically without compromising safety.

UW has worked with City staff on technical issues and has supported the City with resources to handle emergency situations when requested.  In particular, UW has provided technical support to the City, at no additional cost, related to planning and construction in dealing with more stringent discharge requirements imposed by the California Regional Water Quality Control Board. They have given valuable input on the recent upgrades to the BWRP. The operations staff has also allowed for a smooth transition to the current biological process.  Their support during these upgrades completed in July 2005 helped make these projects a success.

In addition to the operation of the BWRP, UW has implemented the City of Burbank�s Industrial Pretreatment Program (IPP). UW is responsible for regulating the wastewater discharge from over 400 industrial users within the City limits.  UW has developed the City�s industrial user database, improved sampling and inspection procedures, developed local limits, and has assisted the City in complying with USEPA audits.

Although the current contract will not expire until June 30, 2006, an amendment was pursued now to allow sufficient time to send out a Request for Proposals if negotiations broke down.  UW responded to the City by agreeing to hold constant the cost for the operations, laboratory, pretreatment and stormwater expenses to the amount paid in the 2004-05 fiscal year, forgoing the increase indicated in the current contract of $217,252.

Other changes included in this amendment consist of a modification to the cost savings incentive, a penalty for excessive personnel turnover, and a modification of the future annual payments adjustment methodology.  

The current contract comprises approximately 35% of the total Sewer Fund operating expenses in fiscal year 2004-05.  The proposed costs represent a reduction of $217,252 from the budgeted amount for the 2005-06 fiscal year. The cost of the proposed amendment relative to the current contract is illustrated in the table below:

Due to a cost-effective record of service provided by UW, reflected in our relatively low sewer service charges, and their knowledge and experience of the treatment systems and the IPP, the staff is recommending dispensing with a Request for Proposals and signing a contract for these services for a six-year period.

FISCAL IMPACT:

The proposed amendment will reduce the budgeted cost for services during fiscal year 2005-06 by $217,252.  This amendment will not require an increase in sewer service charges beyond what had been planned and budgeted.

RECOMMENDATION:

Adopt the proposed resolution entitled: 

APPROVAL OF AN AMENDMENT TO A PROFESSIONAL SERVICES AGREEMENT (PSA) WITH UNITED WATER SERVICES FOR THE OPERATION OF THE BURBANK WATER RECLAMATION PLANT, IMPLEMENTATION OF THE INDUSTRIAL PRETREATMENT PROGRAM AND IMPLEMENTATION OF THE ILLICIT STORMWATER PROGRAM.

Attachment:    Agreement

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