REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Assistant Director - UP&E
Department of Public Utilities - Utilities Planning & Engineering
BY: PATRICIA DIEP, Supervising Engineering Technician
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Award a consultant services agreement to NBS Government Finance Group, a California corporation, in the amount not to exceed $139,689, inclusive of a $12,700 contingency, for preparation of a study to update nine (9) citywide utility connection fees as well as for the development of six (6) new utility connection fees exclusive to the City’s General Plan designated Growth Area 2, generally consisting of Southeast Development Area and Central West Area (Citywide)
Body
RECOMMENDATIONS
Staff recommends that City Council award a consultant services agreement to NBS Government Finance Group, in the amount not to exceed $139,689, inclusive of a $12,700 contingency, for preparation of a study to update nine (9) citywide utility connection fees as well as for the development of six (6) new utility connection fees exclusive to the City’s General Plan designated Growth Area 2, generally consisting of Southeast Development Area (SEDA) and Central West Area (Project); and authorize the Director of Public Utilities, or designee, to sign the agreement on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
The Department of Public Utilities is seeking to award a consultant services agreement to NBS Government Finance Group for the Project. The Project is to establish equitable connection fees, Citywide and separately the City’s General Plan designated Growth Area 2, for recovering a proportionate share of costs for water, sewer and recycled water infrastructure and water supply development benefitting new development.
BACKGROUND
The City as matter of equitably recovering the costs of utilities infrastructure and assets has in place utility connection fees. The fees are designed to recover a proportionate share of costs for both existing and future facilities benefitting new development. Previous connection fee efforts have resulted in water connection fees being consolidated into a single water capacity fee with sewer connection fees remaining individualized and recycled water connection fees not having been established to date. Based on an influx of new development, the Department of Public Utilities now desires to update its water connection charges, sewer facility charges, and sewer mains reimbursement/credits.
The services to be rendered will propose an updated citywide water connection charges, sewer facility charges, and sewer reimbursement/credit while also developing connection fees for sewer and recycled water facilities. Separate of the citywide fees, the rendered services will also propose consolidated fees for water, sewer and recycled water facilities and a water supply, sewer capacity, and recycled water capacity development fee, exclusive to the City’s Growth Area 2 as depicted in Figure IM-2 of the City’s General Plan, adopted in December 2014 (See Attachment 2). The need for separate water capacity and water supply development fees within Growth Area 2 is a result of various factors including the lack of water allocations afforded to the City under the 2016 agreement with the Fresno Irrigation District thereby requiring water supply development projects applicable only to this area. Additionally, the impending Temperance Avenue trunk main is being made necessary only as a result of the vast development within SEDA and requiring sewer improvements applicable only to it. Lastly, the future recycled water infrastructure needs to serve the area requires appropriate fees be collected to cover construction costs.
In accordance with Fresno Municipal Code Chapter 4, Article 1, and Administrative Order 6-19 (AO 6-19), the Department of Public Utilities conducted a competitive process to select a consultant to provide services for the Project. A Request for Qualifications was published in the Business Journal and posted on the City’s Planet Bids on April 7, 2021. The City received two qualification packages from prospective consultants on April 23, 2021. On April 29, 2021, the selection committee members met to review and evaluate the qualifications. As allowed for in AO 6-19, the Request for Qualifications was structured for the consultant to provide detailed information regarding experience of the firm and team members, along with other project related concerns, to perform the desired development related fees study. Upon review of the qualifications for meeting the various criteria and analysis of the proposed fee, ------ NBS Government Finance Group was ultimately selected as the firm providing the best value on the services based on the totality of the evaluation.
A standardized Consultant Services Agreement has been used in accordance with Administrative Order 4-4 and the consultant’s Certificates of Insurance have been approved by the City’s Risk Management Division. Upon approval by the City Council, the agreement will be executed by the Director of Public Utilities, or designee.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this consultant services agreement for utility fee development services does not qualify as a “project” for the purposes of CEQA.
LOCAL PREFERENCE
Local preference was not implemented because no local firm submitted a proposal.
FISCAL IMPACT
There is no impact to the General Fund. This Project is located Citywide. This Project is identified in the Water Division and Wastewater Management Division’s five-year Capital Improvement Plan. Funds for this Project are budgeted in the Fiscal Year 2022 Water Enterprise Fund 40101 and Sewer Enterprise Fund 40501.
Attachments:
Attachment 1 - Agreement - NBS Government Finance Group - Utility Connection and Capacity Fee
Attachment 2 - General Plan Figure IM-2