City of Brentwood
Home PageContact Us!Back

City Administration

2010 Council Goals and Strategic Plan | City Council Members | Calendar of Events | Elections
eNotification | Sub-Committees| Pledge of Allegiance Sign Ups | Invocation Sign Up
Live Streaming Council Meeting | Streaming PC Help |
Streaming Mac Help |

Current Council Agenda and Past Meeting Information

 

CITY COUNCIL AGENDA ITEM NO. 10

Meeting Date: August 24, 2004

Subject/Title: Approve a Resolution authorizing the City Manager to execute an agreement with the Contra Costa Water District pertaining to long term treated water services as a part of the Surface Water Treatment Facility - Phase II, CIP Project No. 562-5629.

Prepared by: Engineering: P. Eldredge

Submitted by: Engineering: B. Grewal

RECOMMENDATION
Approve a Resolution authorizing the City Manager to execute an agreement with the Contra Costa Water District pertaining to long term treated water services as a part of the Surface Water Treatment Facility - Phase II, CIP Project No. 562-5629 and authorize staff to reimburse Contra Costa Water District in a not to exceed amount of $2,100,000, which constitutes 50% of the estimated design and associated administration costs.

PREVIOUS ACTION
On September 26, 1995, City Council approved Resolution No. 95-215, authorizing the execution of an agreement with the Contra Costa Water District for water supply.

On March 10, 1998, City Council approved Resolution No. 98-41, approving the principles of the agreement between East Contra Costa Irrigation District (ECCID), Contra Costa Water District (CCWD) and the City of Brentwood for Long-Term Water Supply and authorizing the City Engineer to continue negotiations with ECCID and CCWD to reach a mutually beneficial agreement for all parties.

On December 14, 1999, City Council approved Resolution No. 99-254, approving the agreements between East Contra Costa Irrigation District (ECCID), Contra Costa Water District (CCWD) and the City of Brentwood for long-term water supply, conveyance and treatment.

On August 12, 2003, City Council approved Resolution No. 2947, authorizing the City Manager to execute the amendment to the agreement with the Contra Costa Water District pertaining to treated water services.

On August 12, 2003, City Council approved Resolution No. 2944, authorizing the City Manager to execute a Professional Services Agreement with Raines, Melton & Carella, Inc., for the Design Contract for the Surface Water Treatment Facility – Phase I, CIP Project No. 562-5629.

BACKGROUND
The agreement between ECCID and the City of Brentwood approved by City Council in December of 1999, provided the City with the first right of refusal of 14,800 acre-feet of water annually, to be used for municipal and industrial purposes. Additionally, City Council approved an agreement with CCWD in December of 1999 to resolve overlapping service boundaries, provide interim treatment of this new found water source at CCWD’s Randall-Bold Water Treatment Plant (RBWTP) and require both agencies to continue discussions for long treatment possibilities.

Staff from CCWD and the City have been analyzing several options to provide the long term treatment of this water. The options ranged from the City constructing its own facility adjacent to the Randall-Bold Water Treatment Plant, jointly expand RBWTP with CCWD or construct its own facility. During the analysis of these alternatives, it was determined that a “hybrid” approach was the most optimal and cost effective solution for both the City and CCWD. This approach consists of the City purchasing 3,200 acre-feet/year of existing treatment capacity in the RBWTP and then constructing a scaled down water treatment facility adjacent to the RBWTP. This approach has provided the City a substantial savings thus far and is further detailed in the Fiscal Impact portion of this report.

This agreement outlines the responsibilities of each agency as it pertains to the financing, design, construction, operations, maintenance, regulatory upgrades (if any) and replacement of this proposed water treatment facility. CCWD shall be responsible for all aspects of the project with the City of Brentwood providing oversight and approvals during the design, construction, operations and any potential upgrades to the plant. The City of Brentwood shall reimburse CCWD for the cost of design, construction management, engineering services during construction as well as project administration. The cost of construction shall be financed over 30 years with the City of Brentwood making the debt service payments; however, CCWD shall carry the debt over the life of the loan. The terms of the loan (intrest, payments etc.) to be acquired on the City’s behalf is no different than if the City had acquired it directly. Treated water operations and maintenance costs shall be paid for on a monthly basis, as it is currently done. The cost of these treatment services for this new facility will be comparable to the current per acre foot treatment costs and the City of Brentwood shall review and approve annually the operational budget for the new treatment facility. The agreement also has a provision that allows the City of Brentwood to assume control and ownership of this facility if so desired.

FISCAL IMPACT
The cost of construction and associated soft costs of the new treatment facility is currently estimated at approximately 31 million dollars. Industry standards for soft costs associated with a project of this size and complexity is approximately 30% of the total project cost. This includes design, construction management, engineering services during construction, environmental, planning, survey and project administration. Currently, the soft costs for this project are estimated at 29% of the total project cost. Pursuant to the proposed agreement, the City of Brentwood will reimburse CCWD for these costs over the next three years with the 50% of the design and associated administrative costs due upon execution of the agreement the remainder is to be paid 6 months thereafter. The reimbursable costs associated with the construction management and administration will be paid once the construction contract has been awarded by CCWD, following a competitive bidding process. Additionally, the City will reimburse CCWD for its fair share of existing facilities once this new treatment facility is accepted and treated water is delivered to the City. The above allows the City to optimize its cash flow over the next several years for costs that would normally have to be encumbered entirely at the beginning of the planning and design process, had this been a typical City Capital Improvement Program (CIP) project.

Previously the City had purchased 6 mgd of treatment capacity from CCWD in the existing RBWTP for a total of 10 million dollars. At that time, it was estimated that it would have cost approximately 12 million dollars if the City of Bentwood had decided to construct its own facility of a similar size. This was based on an average construction cost for an equivalent water treatment facility of $2.00 per gallon; however, this excluded raw water facilities as well as an on-site equalization basin (clear well). When these are accounted for, the total cost per gallon increases to $3.39. For purposes of comparison, the following represents what the overall cost difference would be between the City of Brentwood building a facility on its own versus the recommended hybrid approach.

Treatment Plant and All Related Facilities – 10 mgd Treatment Capacity
City of Brentwood Only $33,900,000
City of Brentwood / CCWD Partnership $27,252,000

Difference = $6,648,000

Therefore, the hybrid approach for the construction of a 10 mgd facility has a net capital savings of almost 7 million dollars.

The water treatment cost associated with this new facility is currently projected to be consistent with the treatment cost the City currently pays at the existing RBWTP (approximately $250 per acre/foot). One of the ways this is accomplished is by configuring the new facility in such a fashion that it is easy for the operators to maneuver between the Randall-Bold plant and the new facility; therefore, providing an opportunity to share operators between each facility and subsequently reducing staffing and labor costs.

The new treatment facility has been accounted for in the Development Fee Program as well as in the CIP Budget 04/05 – 08/09 under CIP Project No. 562-5629, Surface Water Treatment Facility Phase I and II. The Development Fee Program accounted for a new water treatment facility and 50% of the plants debt service, will be funded though developer fees. Additionally, a new plant was accounted for in the current Water Fee Study and the current water rates accommodate the remaining debt service for this project; therefore, water rates will not be adversely impacted by this project. However, should City Council approve this agreement, staff will bring back the CIP budget sheet for an amendment to reflect the aforementioned payment schedule for design and project administration, as referenced above and in the agreement. This budget amendment will not increase the overall budget; it will only redistribute funds between fiscal years.

Attachments:
Resolution
Site Map
Agreement

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE CONTRA COSTA WATER DISTRICT PERTAINING TO LONG TERM TREATED WATER SERVICES AS A PART OF THE SURFACE WATER TREATMENT FACILITY - PHASE II, CIP PROJECT NO. 562-5629 AND AUTHORIZE STAFF TO REIMBURSE CONTRA COSTA WATER DISTRICT IN A NOT TO EXCEED AMOUNT OF $2,100,000, WHICH CONSTITUTES 50% OF THE ESTIMATED DESIGN AND ASSOCIATED ADMINISTRATION COSTS.


WHEREAS, on September 26, 1995, City Council approved Resolution No. 95-215, authorizing the execution of an agreement with the Contra Costa Water District for water supply; and

WHEREAS, on March 10, 1998, City Council approved Resolution No. 98-41, approving the principles of the agreement between East Contra Costa Irrigation District (ECCID), Contra Costa Water District (CCWD) and the City of Brentwood for Long-Term Water Supply and authorizing the City Engineer to continue negotiations with ECCID and CCWD to reach a mutually beneficial agreement for all parties; and

WHEREAS, on December 14, 1999, City Council approved Resolution No. 99-254, approving the agreements between East Contra Costa Irrigation District (ECCID), Contra Costa Water District (CCWD) and the City of Brentwood for long-term water supply, conveyance and treatment; and

WHEREAS, on August 12, 2003, City Council approved Resolution No. 2947, authorizing the City Manager to execute the amendment to the agreement with the Contra Costa Water District pertaining to treated water services; and

WHEREAS, on August 12, 2003, City Council approved Resolution No. 2944, authorizing the City Manager to execute a Professional Services Agreement with Raines, Melton & Carella, Inc., for the Design Contract for the Surface Water Treatment Facility – Phase I, CIP Project No. 562-5629; and

WHEREAS, staff from CCWD and the City have been analyzing several options to provide the long term treatment of this water; and

WHEREAS, during the analysis of these alternatives it was determined that a “hybrid” approach was the most optimal and cost effective solution for both the City and CCWD; and

WHEREAS, this approach consists of the City purchasing 6 mgd (3,200 acre-feet /year) of existing treatment capacity in the Randall-Bold Plant and then constructing a scaled down water treatment facility adjacent to Randall-Bold in the future.

NOW THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood hereby authorizes the City Manager to execute the agreement with the Contra Costa Water District pertaining to long term treated water services as a part of the Surface Water
Treatment Facility - Phase II, CIP Project No. 562-5629 and authorize staff to reimburse Contra Costa Water District in a not to exceed amount of $2,100,000, which constitutes 50% of the estimated design and associated administration costs.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 24th day of August 2004 by the following vote:
 

City Administration
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
(925) 516-5440
Fax (925) 516-5441
E-mail allcouncil@brentwoodca.gov