SUBJECT: APPROVAL OF FIRST AMENDMENT TO THE CONSULTANT AGREEMENT WITH PSOMAS TO ASSIST SAN JOSE MUNICIPAL WATER SYSTEM WITH THE PREPARATION OF A WATER UTILITY MANAGEMENT PLAN
COUNCIL DISTRICTS: 2, 4, 7, & 8
RECOMMENDATION
Approval of the first amendment to the consultant agreement with PSOMAS to increase the amount of compensation by $65,000 from $135,000, for a total contract amount not to exceed $200,000, to provide assistance to San Jose Municipal Water System (SJMWS) staff in the preparation of a Water Utility Management Plan (WUMP).
BACKGROUND
On December 19, 2000, the Council approved the issuance of an RFP to operate and/or lease the SJMWS and also approved the selection of HDR Engineering to prepare the RFP. The Council also approved that staff be able to retain a consultant to assist with the preparation of a competitive management plan proposal to be evaluated by Council.
PSOMAS was deemed best qualified to assist staff with the competitive management plan.
On January 23, 2001, the Council adopted Resolution 70132 authorizing the City Manager to negotiate and execute an agreement with PSOMAS to provide assistance to the San Jose Municipal Water System staff in the preparation of a Water Utility Management Plan in an amount not to exceed $135,000. The role of the consultant in this process is to provide staff with the technical expertise and assist in data collection, interviewing, benchmarking, team building, strategy development, plan development, proposal preparation and submittal.
On July 30, 2001, as authorized by the Council, an RFP for the operations and maintenance of the San Jose Municipal Water System (RFP 00-01-3) was issued. Subsequent to the issuance of the RFP, specific direction relating to the form and substance of the Management Plan was provided to Municipal Water System staff. The scope of the Management Plan will need to be expanded to include items related to specifics on future budget and staffing projections that will be needed for Council to compare the Management Plan to responses to the RFP. This additional analysis will require additional compensation. Therefore, it is requested that Council approve the recommended first amendment to the PSOMAS agreement.
Not applicable.
COORDINATION
This memorandum has been coordinated with the City Manager’s Budget Office and the City Attorney’s Office.
COST IMPLICATIONS
The cost of this amendment is $65,000 for a total contract amount not to exceed $200,000. Existing funds are available in the 2001-02 Operating Budget.
BUDGET REFERENCE
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CARL W. MOSHER
Director, Environmental Services Department