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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 18, 2014 <br />TITLE: <br />AMENDMENT TO AGREEMENT WITH <br />BLACK & VEATCH CORPORATION FOR <br />PREPARATION OF A SANITARY SEWER <br />AND WATER FINANCIAL PLAN <br />CITY MAAAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and the Clerk of the Council to execute a second amendment to the <br />agreement with Black & Veatch Corporation, subject to nonsubstantive changes approved by the <br />City Manager and City Attorney, to prepare the City's Sanitary Sewer and Water Financial Plan, in <br />an amount not to exceed $100,000. <br />DISCUSSION <br />Approval of this recommended action will allow Black & Veatch Corporation (B &V) to perform <br />additional analysis and evaluation to complete the Sanitary Sewer and Water Financial Plan. This <br />plan is needed to address the City's long -term water and sanitary sewer infrastructure needs. <br />On October 17, 2011, the City Council approved a consultant agreement with B &V, in the amount <br />of $230,000, to prepare a Sanitary Sewer and Water Financial Plan. The report would assess the <br />City's water and sanitary sewer system and provide, among other items, a Rehabilitation and <br />Replacement schedule, a Capital Asset Management & Prioritization System model, and a rate <br />analysis. <br />On February 4, 2013, the City Council approved an amendment to the agreement with B &V, in an <br />amount not to exceed $150,000, for additional analysis to evaluate the potential impacts of a <br />possible sanitary sewer transfer between the Orange County Sanitation District and the City. Such <br />a change in ownership could result in a substantial change in costs to the City's Sewer Enterprise. <br />Over the course of the past year, several financial and operational issues have been subsequently <br />identified that require further analysis and inclusion in the final report. City management has <br />identified the goals and criteria of this analysis, such as appropriate reserve levels and additional <br />program costs. The added work is necessary to properly evaluate potential impacts financially, <br />managerially, and operationally, to both the water and sewer enterprises. <br />25C -1 <br />