SUBJECT: SECOND AMENDMENT TO CONSULTANT AGREEMENT WITH EISENBERG, OLIVIERI, AND ASSOCIATES, INC. (EOA, INC.)

RECOMMENDATION

Approval of a second amendment to the consultant agreement with EOA, Inc. to continue to perform Advanced Regulatory Analysis, extending the term of the agreement by one year, from June 30, 2001 to June 30, 2002, at no additional cost to the City.

BACKGROUND

The City faces a complex set of regulatory issues affecting its operation of the San Jose/Santa Clara Water Pollution Control Plant (Plant). The City must maintain awareness of regulatory and policy developments at the local, state, and national level in order to prepare for new permitting or long-term policy impacts, ensure consistency with the City’s Water Policy Framework, and direct resources to the highest priority problems.

The EOA agreement, which was approved by Council on August 18, 1998, provides the Environmental Services Department (ESD) with the assistance of technical specialists to review, analyze, and report on the latest environmental regulatory, policy, and technical developments at the local, regional, state, and national level related to water quality and the National Pollutant Discharge Elimination System (NPDES) permit programs.

ANALYSIS

This agreement has provided valuable consulting services to the City, including the preparation of a strategic plan with respect to upcoming regulations. EOA, Inc. performed specific work assignments, on an as-needed basis, involving technical, regulatory, or economic analysis of specific pending regulation or policy initiatives that may impact the City’s programs and permit compliance activities.

Several high priority issues have been delayed in the regulatory system, requiring an extension of this agreement. The Total Maximum Daily Load (TMDL) process, which requires U.S. Environmental Protection Agency (EPA) and the State Water Resources Control Board (SWRCB) to develop action plans to improve water quality, has been significantly delayed. In addition to the TMDL, the Regional Water Quality Control Board (RWQCB) has issued a proposal to establish performance based interim mass-limits in the absence of the TMDL. Phase II of the State Implementation Plan (SIP) that addresses effluent dependent water bodies and site-specific objectives was also delayed and is just now being initiated by the RWQCB. The Revised State Board Enforcement Policy, which includes references to mandatory minimum penalties for discharge violations, was delayed to address significant comments received. These SWRCB and RWQCB regulatory processes will need to be closely tracked through this contract to determine potential impacts to the City. At a Federal level, several proposed Federal rules and regulation were pulled from the Office of the Federal Register in accordance with the Bush administration’s 60-day stay on new regulations. This has resulted in delays to rules, such as the Sanitary Sewer Overflow Rule, that could be significant to the City and will require continued tracking and analysis through this contract.

PUBLIC OUTREACH

Not applicable.

COORDINATION

This memo has been coordinated with the City Attorney’s Office and the Office of Equality Assurance. This item was scheduled to be heard at the June 14, 2001, Treatment Plant Advisory Committee.

COST IMPLICATIONS

This agreement is for a maximum amount not to exceed $250,000. No additional funds are needed for this amendment.

CARL W. MOSHER

Director, Environmental Services Department