ADMINISTRATIVE COMMITTEE
7.	CONSIDER EXPENDITURE OF BUDGETED FUNDS TO AMEND CONTRACT WITH PUEBLO WATER RESOURCES TO PROVIDE HYDROGEOLOGIC REVIEW FOR WATER DISTRIBUTION SYSTEM PERMITS
Meeting Date:		June 15, 2010	Budgeted:	Yes
From:		Darby Fuerst,	Program/	WDS Permitting
		General Manager	Line Item No.: 2-8-2 and 2-8-4
Prepared By:		Henrietta Stern	Cost Estimate:	$16,000
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on June 15, 2010 and recommended __________________.
CEQA Compliance: N/A

SUMMARY: The Board will consider authorizing the General Manager to amend an existing contract with Pueblo Water Resources, Inc. (Pueblo) to authorize a maximum of $16,000 for Fiscal Year (FY) 2010-2011 (July 1, 2010 through June 30, 2011) to continue to help District staff carry out MPWMD Rules and Regulations governing Water Distribution Systems (WDS), specifically in regards to hydrogeologic review of well pumping test reports and related tasks. The $16,000 limit would be allocated in two parts, which would be tracked separately in each monthly invoice as follows:

Ø Program 2-8-2, “Hydrologic Impact Review,” with up to $8,000 as 100% reimbursable from applicants; and

Ø Program 2-8-4, “Technical Procedures Update,” with up to $8,000 as non-reimbursable.

These funds are based on volume of work in the current fiscal year and anticipated tasks associated with updating technical procedures and other non-reimbursable tasks next year. Consultant assistance is needed to help the Water Resources Division address the technical information provided in the many WDS applications that are currently active (17 active projects as of June 1, 2010) in addition to anticipated projects that could be received next fiscal year. Exhibit 7-A is the proposed scope of work and cost estimate from Pueblo for FY 2010-2011.

The hydrogeologic review is the heart of the WDS permit assessment, and must show that a well (or other water source) will reliably meet the applicant’s needs, will not harm neighboring systems (wells) or harm Sensitive Environmental Receptors as defined in District Rule 11.

RECOMMENDATION: Staff recommends that the Board authorize the General Manager to amend the current District professional services contract with Pueblo for a not-to-exceed amount of $16,000 for FY 2010-2011, as described above. If this item is adopted along with the Consent Calendar, staff will execute a contract amendment with Pueblo for FY 2010-2011 in June 2010, so work will be uninterrupted when the new fiscal year begins on July 1, 2010.

BACKGROUND AND DISCUSSION: Pueblo has been retained since June 2006 to assist staff with WDS permit processing. All amounts are maximums; only actual hours of service are billed. Invoiced hours submitted by consultants for each applicant are reimbursed by the applicant before the applicant receives the signed WDS permit. It is noted that Pueblo’s rates are 3% higher than last year to reflect inflation ($5 per hour increase). This same rate schedule was approved by the Board earlier this year for Amendment #4 to Pueblo’s contract for the District’s Aquifer Storage and Recovery Project.

The hourly rate of similar consultant firms was checked by Joe Oliver, MPWMD Water Resources Division Manager, who found that Pueblo’s rates are competitive with other consulting firms with experienced, registered hydrogeologists. Should it be possible to locate a qualified firm with lower rates, District staff does not believe a small difference in rates would justify the lost staff time to train a new individual and the disruption in work flow. Pueblo is very knowledgeable about local hydrogeology and MPWMD procedures, and is considered to be cost efficient for this work.

IMPACT TO DISTRICT RESOURCES: A steady volume of WDS applications is expected, despite the economy, due to increasing restrictions on the availability of California American Water supply for new construction and remodels. Consultant assistance is essential to adequately process permit applications in compliance with the State Permit Streamlining Act and to help the Water Resources Division address technical questions relating to the WDS process.

Pueblo’s technical work is directed by the MPWMD Water Resources Division Manager with billing managed by the Project Manager (Planning & Engineering). Since July 2010, funding has been budgeted to the P&E Division as Pueblo’s work is part of the WDS permit process. Pueblo’s work product is used as evidence by the planning consultant (GSPEC; see Agenda Item 8) who assists the Project Manager in preparing WDS permit documents, including formal Findings of Approval.

EXHIBIT

7-A Pueblo Scope of Work and Fee Schedule for FY 2010-2011

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