To:   HONORABLE MAYOR AND                  From:   Carl W. Mosher

                        CITY COUNCIL

 

   Subject:   SEE BELOW                                               Date:   5-27-03

 

 

SUBJECT:  First Amendment to Agreement with Eisenberg, Olivieri and Associates (EOA)

 

 

RECOMMENDATION

 

Approve the first amendment for consultant services for Advanced Regulatory Analysis with Eisenberg, Olivieri & Associates Inc. (EOA) to extend the contract by four years from December 31, 2003 to December 31, 2007 and increase compensation by $200,000 from $99,000 for a total amount not to exceed $299,000.

 

 

BACKGROUND

 

The City faces a complex set of regulatory and permit compliance issues affecting its operation of the Water Pollution Control Plant (Plant), which may have significant cost implications.   In order to minimize these costs, the City must maintain awareness of regulatory and policy developments at the local, state and national level by being able to maintain compliance with new requirements or being able to influence new requirements through commenting.  In addition, compliance costs can be reduced by preparing for permit re-issuance and long-term policy impacts, and to align programs to new regulatory developments directing resources to the highest priority issues.   Moreover, the consultant would also provide economic analysis of regulations and potential impacts on the City and tributary area.

 

The use of EOA Inc. has been invaluable in enabling the City to maintain compliance and to have input into the evolving regulatory process by tracking issues that may affect the City’s environmental programs and by providing comments on new regulatory initiatives, such as the Total Maximum Daily Load (TMDL) regulations effecting copper, nickel, and mercury.  Also with development and implementation of the National Pollutant Discharge Elimination System (NPDES) permit.

 

 

 

ANALYSIS

 

Because of the highly specialized nature of the work requested by the City, EOA was selected as a sole source consultant in December of 2001.  Extension of this contract will allow the City to continue to draw on the extensive technical expertise of EOA staff and sub-consultants to assist the City in developing current and future National Pollutant Discharge Elimination System (NPDES) permit applications.  Such assistance will allow the City to better define programmatic elements consistent with local, state and federal regulatory initiatives.

 

·        EOA, Inc. has performed Regulatory Analysis for the City since 1998 and has previously supported the City on similar issues since 1992.  In 1998, EOA was awarded the regulatory analysis contract after conducting a Request for Proposal (RFP) where only two qualified consultants replied. 

 

·        A contract with EOA will allow for continuity in a quickly changing environment.  The City will avoid spending additional resources on familiarizing another consultant with the vast amount of background information necessary to assist the City in this effort.  In addition to qualifications described above, EOA’s expertise includes: 

 

a)      Continuous involvement with issues specific to the South Bay in relation to the regional, state and federal water quality regulatory process.

 

b)      Significant and highly technical information provided to the City in support of the City’s regulatory positions.

 

The agreement will provide consulting services to the City to assist with analysis of important federal, state and local regulatory and technical issues, potentially including the preparation of technical memoranda, briefing materials, comments, and economic analysis of proposed regulations and programs.

 

EOA Inc. will perform specific work assignments, as directed on an as-needed basis and will provide information on the potential impacts of regulatory issues gathered from their analysis to City staff.  EOA Inc. has access to a wide range of expertise and skills, allowing the person or consultant that can most efficiently research and analyze an issue to be tasked.  Continuing proactive involvement in the regulatory field is an investment in the City’s sustainable future.

 

 

PUBLIC OUTREACH

 

Not applicable.

 

 

COORDINATION

 

This memo has been coordinated with the City Attorney’s Office, City Manager’s Budget Office, Risk Management and Planning Building and Code Enforcement.  This item is scheduled to be heard at the June 12, 2003 Treatment Plant Advisory Committee (TPAC) meeting.

 

 

COST IMPLICATIONS

 

In accordance with the Mayor’s Budget Strategy, this proposal meets the following General Principles:

 

·        Protect our vital core city services (Environmental and Utility Services: Manage Wastewater)

·        Emphasize prevention and expenditures that reduces costs to the City and our community

 

Regulations affecting the Plant can impact future growth and economic viability through limits on pollutants and potential limits on flows.  Without the proper regulatory analysis, the City may be forced to accept new regulations impacting vital services or to seek legal remedies, both at significant increased costs.   Continuing proactive involvement in the regulatory field is an investment in the City’s sustainable future, reducing long term and short term direct and indirect costs from permit and regulatory compliance.

 

Existing funds are available for this purpose.   No appropriation action is required.

 

 

BUDGET REFERENCE

 

Fund #

Appn #

Appn Name

RC #

Total Appn

Adopted Budget Page

Last Budget Action

513

0762

Non-Personal/Equipment

100300

31,812,931

Page 191

10/15/02 – Ord. No. 26755

                                                           

 

 

CEQA

 

Not a project

 

 

CARL W. MOSHER

Director, Environmental Services Department