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HomeMy WebLinkAboutAgenda Report - April 19, 2017 C-13CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM C45 TM AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Agreement with Central Valley Clean Water Association for Participation in the Toxicity Special Study ($25,000) MEETING DATE: April 19, 2017 PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute agreement with Central Valley Clean Water Association for participation in the Toxicity Special Study, in the amount of $25,000. BACKGROUND INFORMATION: The Central Valley Clean Water Association (CVCWA) was formed to represent the State and federal regulatory interests of wastewater agencies in the Central Valley and to support the exchange of information so member agencies can best meet their business challenges. The intent of CVCWA is to approach inland surface water discharge and land application regulatory matters with a perspective that balances environmental and economic interests and to speak with a unified voice from its members and partnering organizations. When necessary, CVCWA takes legislative and judicial steps to further its purpose. The City of Lodi has participated in the CVCWA since 1987. The State Water Resources Control Board (SWRCB) plans to release the final draft Toxicity Assessment and Control Policy (Policy) this year, which proposes to modify the method for evaluating effluent toxicity discharged from wastewater facilities. Toxicity testing involves observing the survival and reproduction of the Ceriodaphnia dubia or fat head minnow in the final effluent. Currently, wastewater toxicity exceedances result in further required testing that is often an exhausting, expensive, and many times unsuccessful procedure which involves four separate toxicity confirmation tests. In Fiscal Year 2015/16, the City's White Slough Water Pollution Control Facility was required to complete such testing due to a toxicity exceedance at a cost of $33,203. To address the cumbersome and sometimes ineffective toxicity testing procedures, SWRCB proposes to utilize the Test of Significant Toxicity (TST) for toxicity evaluation. The TST is more streamlined and straightforward than current procedures and in cooperation with SWRCB, CVCWA has agreed to conduct this Toxicity Special Study (Study). The Study will evaluate chronic toxicity test results from various Central Valley wastewater facilities to determine the potential adverse effects on receiving water aquatic life. Through this process, the Study will to provide the information to State regulators so the Policy effectively and appropriately addresses low-level toxicity issues in wastewater discharge permits. The City's share of the Study is not -to -exceed $25,000, with $15,000 paid in July 2017 and the remaining $10,000 paid in July 2018. If more agencies participate, the cost may be reduced. Staff recommends participation in the collaborative study managed through CVCWA. The study results are expected to support the more streamlined and cost effective TST evaluation procedure, potentially reducing the cost of the future toxicity testing for the City of Lodi and other Central Valley wastewater treatment facilities. APPROVED: irah .';k phi, ''c wa1a • ty Manager R:\GROUP\WWW\WHITESLO\CVCWA Low Level Toxicity Study\Council Documents\CC# CVCWA Low Toxicity 2017.doc 4/5/17 Adopt Resolution Authorizing City Manager to Execute Agreement with Central Valley Clean Water Association for Participation in the Toxicity Special Study ($25,000) April 19, 2017 Page 2 FISCAL IMPACT: Revision of SWRCB Policy may result in potential cost savings if the City is required to perform accelerated toxicity testing in the future. FUNDING AVAILABLE: Wastewater Utility Fund (53053003) Andrew Keys Deputy City Manager/Internal Services Director C` Charles E. Swimley, Jr. Public Works Director Prepared by Kathryn E. Garcia, Compliance Engineer CES/KMG/trb Attachment cc: Utilities Manager R:\GROUP\WWW\WHITESLO\CVCWA Low Level Toxicity Study\Council Documents\CC# CVCWA Low Toxicity 2017 doc 4/5/17 Statement of Commitment to be part of the CVCWA Toxicity Special Study The City of Lodi is committed to fund and participate in the CVCWA Toxicity Special Study, per the participation rules for a Major Funding Agency as described in Exhibit D to the Contract for Toxicity Special Study for Central Valley Wastewater Treatment Plants. Signed: Date: Stephen Schwabauer City Manager ATTEST: APPROVED AS TO FORM: Jennifer M. Ferraiolo Janice D. Magdich City Clerk City Attorney Exhibit D to the Agreement between the Central Valley Clean Water Association and Larry Walker Associates, Inc. SPECIAL PROVISIONS A. PROJECT MANAGEMENT TEAM 1. The Project Management Team shall be up to three members of the CVCWA Toxicity Special Study for Central Valley Wastewater Treatment Plants in good standing, elected by majority of the Toxicity Special Study for Central Valley Wastewater Treatment Plants Project Steering Committee Members. 2. The Project Management Team shall manage and coordinate performance of the approved Scope of Work. 3. The Project Management Team shall coordinate with the Funding Agencies regarding the need for funds to be deposited with CVCWA in order to carry out the Scope of Work. 4. The Project Management Team shall review and approve the invoices submitted by CONSULTANT in excess of $1,000. A member of the Project Management Team shall authorize CVCWA to release funds in payment of the invoices only if sufficient funds are on deposit in the Special Project Account. The Executive Officer is authorized to review and approve payment for invoices of $1000 or less, but shall provide electronic copies of invoices to the Project Management Team. 5. The Project Management Team shall review status of CVCWA's cost to administer and participate in the Toxicity Special Study for Central Valley Wastewater Treatment Plants and the transfer of funds to compensate CVCWA's general fund for such efforts. Should discrepancies or concerns arise, the Project Management Team will work with the CVCWA Executive Officer and Board of Directors to resolve these issues. 6. Should any member of the Project Management Team no longer be able or willing to fulfill the duties of a Project Manager, a new Project Manager shall be elected to the Project Management Team if necessary. The Project Management Team will always have at least two Project Managers. B. FUNDING AGENCIES 1. Funding Agencies a. Major Funding Agencies: Exhibit D — Page 1 A Major Funding Agency is an agency which shares in the funding of this Special Project in accordance with the cost sharing formula described in Section B.2.b below. Major Funding Agencies shall be members of the Toxicity Special Study for Central Valley Wastewater Treatment Plants and of the Steering Committee, and shall have a vote as described in Sections C and E below. b. Minor Funding Agencies: Other CVCWA member agencies and non-CVCWA members may be interested in contributing to this effort, but not at the level of the Major Funding Agencies. A Minor Funding Agency is a CVCWA member or non- member agency that contributes $5,000 or more or towards this Special Project.' Minor funding agencies will not receive regulatory credit towards this project as described below. Information concerning this special project may be shared with minor funding agencies at the discretion and as authorized by the Steering Committee. Minor funding agencies will receive access to final reports submitted to the Central Valley Regional Water Quality Control Board. c. POTWs outside of the Central Valley and Non-POTWs In order to include and evaluate any non-CVCWA member or-non-POTW entity's toxicity data as part of this study, a Major Funding Agency will need to contribute additional amounts per the Special Project Contributions Table in section B.2.a below. All Major Funding agencies outside of the Central Valley must join by May 15, 2017, in order for their data to be considered. After this date, toxicity data will only be considered by agreement of the CONSULTANT and the Steering Committee and shall not impact the overall timeline of the project. Inclusion of data will be limited to Freshwater Toxicity Species. Participants in this category recognize that regulatory discussions that are described in the scope of this project are limited to Central Valley Regional Water Board Staff and Board members and State Water Board Staff and Board members and will be focused on the interest of Central Valley POTWs. d. Addition of Funding Agencies Major and Minor Funding Agencies may join at any time. However, new Major Funding Agencies will we required to contribute at the full contribution level for their appropriate tier, to the current work in progress unless otherwise approved by the Steering Committee, and to any additional costs to cover the addition of their agency. Contributions for new Major Funding Agencies which have change tiers after the start of the project and will be required to contribute based on current permitted flow. With additional Funding Agencies, the cost sharing formula for 1 Full payment of at least $5,000 must be received before an agency qualifies for Minor Funding Agency status. Exhibit D — Page 2 Major Funding Agencies may be reapportioned to reflect the contribution of the additional funding agencies. 2. Cost Sharing a. Contribution Levels Special Projects Contribution Levels Participant Major - CVCWA POTW Member Major — CVCWA Member (Associate) POTW Outside Central Valley or Non-POTWs inside or outside the Central Valley Major Facilities (Permitted ADWF >3 MGD) $ 25K $ 25K Major - Non-CVCWA Member but within Central Valley $ 25K Major - Outside Central Valley and Non-POTWs Minor $ 25K Minor Facilities (Permitted ADWF <_ 3 MGD) Flat Fee $ $ 15K $ 15K $ 15K $ 15K Additional Fee $ $ 1K $ 2K $5K minimum Dischargers with monthly chronic toxicity testing $11,908 Dischargers with quarterly or Tess chronic toxicity testing $9,768 Cost equal to membership for the duration of the Special Project (estimate 1.5 years of membership) Dischargers with monthly chronic toxicity testing $12K Dischargers with quarterly or Tess chronic toxicity testing $9,800 A facilities Average Dry Weather Flow is based on the design permitted flow for dry weather, not actual flow. b. Payment Schedule Unless otherwise arranged in advance, billing for this project is anticipated to occur in two parts: March and July, 2017. Billing to steering committee members and minor facility's is anticipated as such: Exhibit D — Page 3 PAYMENT SCHEDULE co $2 0 z 0 O O 1. March 2017 N E 0 O O o .S LL .a a) a) a) O0E-c oZ nCEoc`)45 EcooL- a) C Q U o a) > O E >.o D 3a O O (a cO to 0 co m E .c a) _c .� N C a) 0)'C O � oa)c0c 0 0 a) i a- a < co 0- aE 0s_0 O O O U !+- 0 0 a) Q N a) (a U co O a) O a) 0) _O O a) 0- 2 LL (a E o 2 aa)) co (o _>. U .X O O 0 U c_ 9- O a) O N E 7) co a) (1) D L -0 Q OO a . �.c .0 O y2 0 a) -o _a a) a) f4 < E c o 0 Z aci O O M A .O 6. a) E o w = 2v 3 < .ELL > 3 3 P zC• L> Exhibit D — Page 4 N r O z n 0 N 'O _) U March 2017 'C 0) E $9,500 plus % cost of annual membership to CVCWA a) L a) O 9- O d E+▪ N+ -c• O .3 a) < • LOdE vi U • 1 ->a va Lam_ __•c., O O 0 co ZZOU.. O U O L U O N a) O a) (E 7 o- 0) a) 0) L U O) N•C o a) CO > CO N- 0)- •••• - o)O $5,000 minimum O) O Exhibit D — Page 5 Agencies joining after June 2017 will be required to pay the sum of the March and July 2017 installments as a condition to join the Special Project. Complete payments from the Funding Agencies must be made within 30 days of receiving invoice. c. Administrative Surcharge for Major Funding Agencies that are not Members of CVCWA in Good Standing The Flat Fees and additional fees in lieu of membership are intended to cover costs by CVCWA that have and will be incurred by CVCWA both prior and during this project. These contribution amounts shall be deposited in CVCWA's general fund. d. Maximum Payment to Consultant The maximum payment to the CONSULTANT under this agreement shall not exceed $299,872 unless approved by the Steering Committee pursuant to section C and D of this exhibit. A portion of the participating agencies' contributions, estimated at $30,000, will be set aside for CVCWA Executive Officer and Administrative Services efforts towards this project as described in paragraph e below. A portion may also be set aside by the Steering Committee as a reserve for additional work efforts. Expenditures exceeding $5,000 of the reserves will only be authorized by the Steering Committee. Expenditures of the reserves but within budget may be authorized or Project Leadership. e. Reimbursement for CVCWA Executive Officer and Administrative Services work toward this Special Project As noted in paragraph d above, a portion of the contributions is being set aside to reimburse CVCWA for CVCWA Executive Officer and Administrative Services efforts towards this project. These contributions will be used to offset CVCWA General Fund costs for CVCWA expenses to form, administer and participate in the CVCWA Toxicity Study Special Project. The Executive Officer will provide the Project Management Team a summary of monthly hours worked and costs incurred by the Executive Officer and Administrative Assistant toward this project when monies to cover these expenses are being transferred from the Special Project to the General Fund. Cost will be based on actual cost to CVCWA (compensation rates, expenses, etc.) The Project Management Team will work with the CVCWA Board of Directors and the Executive Officer to resolve any issues should any discrepancies arise. This amount does not include the additional non-member amounts collected as described in paragraph c above. Funds collected under this provision will be transferred to CVCWA's General Fund to compensate CVCWA for significant prior work on Toxicity and Toxicity Permitting Advocacy at the State and Regional Water Board. Additional Work Due to Addition of New Funding Agency Exhibit D — Page 1 If additional work is added and approved by the Steering Committee due to the addition of a new Major Funding Agency, the new Major Funding Agency will be responsible for the additional contract and administrative costs, in addition to its contribution as a Major Funding Agency. The Steering Committee may refuse addition of new funding agencies if the additional work could cause the project to be delayed or deadlines to be missed. g. Withdrawal i. Any Funding Agency may withdraw from the project by providing thirty days written notice to the Project Management Team. ii. A Funding Agency that withdraws shall be liable for that agency's share of the funding that has been deposited and not entitled to a reimbursement. iii. Upon withdrawal of any Funding Agency, the Steering Committee may revise the cost-sharing amounts set forth above to reapportion the withdrawing agency's contribution among the remaining agencies. iv. Upon withdrawal of any Funding Agency, CVCWA will notify the Regional Water Board that the Agency is no longer participating in the Toxicity Special Study for Central Valley Wastewater Treatment Plants as of the date of the withdrawal. v. A Funding Agency that withdraws from the project will no longer have Steering Committee privileges, including access to work products or discussions after the date of withdrawal. vi. Failure to contribute in per the payment schedule above is grounds for withdrawal from this Special Project. CVCWA will provide written notice to a Funding Agency whose payment is delinquent. The Funding Agency must respond within 30 days or will be deemed as desiring withdrawal from the Special Project. Final decisions regarding the status of Funding Agencies with delinquent payments will be determined by the Steering Committee. h. Reallocation of Costs i. Table X above shows contributions to be split between two invoices: March 2017 and July 2013. Contribution amounts were based on a limited number of agencies participating. Should additional agencies choose to participate, the amount of the July 2017 contribution will be adjusted so that the target overall project budget of $330,000 will still be collected with minimum overages, unless otherwise directed by the Steering Committee. ii. At the conclusion of the work authorized by this agreement, any excess funds shall be returned or credited to active Major Funding Agencies in the following order: Exhibit D — Page 2 a) Active Major Funding Agencies who contributed more than required in their Contribution Level shown in B.2.a plus any additional cost share approved by the Steering Committee or required due to Provision B.2.g. above, will be credited or refunded the amount paid over their stated Contribution Level amount; b) The remaining excess funds will be credited to each active Major Funding Agency in proportion to the amount each active Major Funding Agency contributed minus any credit described in B.2.h.ii.a or cost due to B.2.g. Rather than have excess fund credits returned to a Major Funding Agency, the Major Funding Agency may elect to have these funds credited towards another CVCWA effort (such as dues, special projects, special contributions, etc.) by notifying CVCWA of the request in writing. iii. In the event that this Agreement is amended and results in increased costs, Funding Agencies may elect to make additional contributions to support the additional work. These additional contributions may be in the form of rolling over any excess funds from prior phases of the project. 3. Regulatory Benefits A major goal of this Special Project is to provide regulatory credit with the Central Valley Regional Water Board for participation in a collaborative CVCWA Toxicity Special Study. Only at the full level of contribution will a Major Funding Agency be credited by CVCWA as participating in this project with the Central Valley Regional Water Board. Minor Funding Agencies will not be credited by CVCWA as participating in this collaborative study with the Regional Water Board. CVCWA will notify the Regional Water Board in writing of the status of Major Funding Agencies. Should other Regional Water Board allow participation in this project as an option in its Toxicity Evaluation Study or Toxicity Reduction Plan, CVCWA will provide notification to that Regional Water Board of participation upon request and appropriate contact information. CVCWA's notification is not intended to substitute for any progress or status reports or compliance reporting. Each individual agency is responsible for these requirements. Exhibit D — Page 3 C. STEERING COMMITTEE 1. CONSULTANT will provide the services described in Exhibit A subject to direction from a Steering Committee. The Steering Committee shall consist of one representative of each of the Major Funding Agencies. Each Major Funding Agency shall designate one principle representative and one or two alternates, who will participate in Steering Committee meetings in the absence of the principle representative. A Major Funding Agency may designate a non- employee (consultant) to serve as its principle or alternate representative, solely at its cost. However, the non-employee must agree in writing that materials and discussions concerning this special project are proprietary and will not be used for other projects or the benefit of other work. The Steering Committee may waive this requirement on a case-by-case basis. 2. Each member of the Steering Committee shall have one vote. 3. A majority (greater than 20%) of the steering committee members must be represented in person or by conference call to constitute a meeting quorum. Once a quorum is established, the meeting may continue and business may proceed until the meeting is closed by the majority of steering members present or when less than 10% of steering committee members are present. 4. The Steering Committee shall: a. Appoint a Project Management Team. b. Accept and approve final work products prepared by CONSULTANT. c. Define and authorize work on the tasks identified in Appendix A, or other tasks as determined by the Project Management Team or Steering Committee. d. Approve revisions to the Scope of Services, project phases, schedule or project budget within the limitations established between the CVCWA and CONSULTANT. No changes to the Scope of Services or budget shall be effective unless approved by the Project Management Team or Steering Committee. e. Make other determinations as appropriate and described herein. E. DECISION MAKING 1. All Steering Committee members are encouraged to actively participate in this Special Project. 2. At least a majority (greater than 50%) vote of the Steering Committee present either in person or by conference call is required for action. Exhibit D — Page 4 3. Steering Committee members will be required to review discussion draft and final report materials shared with the Regulatory Workgroup. All final materials shall have Steering Committee, and sometimes CVCWA Board approval prior to submittal to the Regional Water Board. F. OWNERSHIP OF WORK PRODUCTS 1. All technical data, reports, documents, or other work products of CONSULTANT provided pursuant to the Scope of Services, shall become the property of the CVCWA and shall be delivered to the Steering Committee upon completion or request. CONSULTANT may retain copies for its files and internal use. 2. Release of the information directly derived from work performed or data obtained in connection with services rendered under this Agreement must first be approved by the Steering Committee or the CVCWA Board if the Steering Committee is no longer active. No document prepared pursuant to this agreement shall be deemed final unless approved by the Steering Committee. Exhibit D — Page 5 RESOLUTION NO. 2017-66 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT WITH CENTRAL VALLEY CLEAN WATER ASSOCIATION FOR PARTICIPATION IN THE TOXICITY SPECIAL STUDY WHEREAS, the Central Valley Clean Water Association represents the interests of wastewater agencies in regulatory matters of which the City has participated in since 1987; and WHEREAS, the revised policy expected to be released by the State Water Resources Control Board would establish water quality objectives, if adopted, may also reduce the need for Toxicity Identification Evaluation and Toxicity Reduction Evaluation due to low-level toxicity; and WHEREAS, the City's share of the not -to -exceed cost for participation in the program is $25,000; and WHEREAS, staff recommends that the City Council authorize the City Manager to execute the agreement with Central Valley Clean Water Association for participation in the Toxicity Special Study, in the amount of $25,000. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute the agreement with Central Valley Clean Water Association for participation in the Toxicity Special Study, in an amount not to exceed $25,000. Dated: April 19, 2017 I hereby certify that Resolution No. 2017-66 was passed and adopted by the City Council of the City of Lodi in a regular meeting held April 19, 2017 by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None NNIFER FERRAIOLO ity Clerk 2017-66