Title
Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with NBS for Sewer Service Charge Tax Roll Administrative Services in an Amount Not to Exceed $278,108.44. (Public Works 50141600)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda (City) owns a wastewater collection system and levies sewer service charges through the County tax roll. The City requires the services of a specialized firm to determine and prepare the levy for submittal to the County Auditor Controller. The City has contracted with NBS since Fiscal Year (FY) 2009-10 for sewer service charge tax toll administrative services. Staff is seeking approval for a new five-year agreement with NBS in the not to exceed amount of $278,108.44 to continue with these services.
BACKGROUND
The City owns and operates 128 miles of sewer collection system and 33 pump stations. Sewer service charges are viewed as property-related fees and are subject to specific requirements of the California Constitution Article XIII D § 6(a), commonly referred to as Proposition (Prop) 218. In October 2019, staff contracted with Bartle Wells Associates to conduct a sewer financial plan and rate study. Based on an evaluation of sewer funding needs and revenue sources, a public hearing was held on May 24, 2020, and an annual increase of 3% to the sewer service charges through FY 2025 was approved.
The City collects its sewer service charge through the tax roll with the exception of certain parcels that are directly invoiced. The sewer service charge is determined based on assessor parcel maps, utility and other information needed to apply the approved rate formula. The levy must be submitted to the County Auditor Controller in a required format and timeline. Levies rejected by the County Auditor Controller must be researched and resubmitted for collection on the tax roll.
DISCUSSION
Staff seeks City Council’s approval for a new five-year agreement with NBS in the not to exceed amount of $278,108.44 to continue sewer service charge tax roll administrative services. Per section IV.D of the Personal/Professional Services portion of the City’s Purchasing Policy, staff recommends waiving the competitive solicitation and selection requirements for projects costing more than $75,000 given NBS’s historical knowledge of data, process, and rate application. In addition, NBS has consistently delivered high quality service.
ALTERNATIVES
• Award the agreement as presented.
• Direct staff to perform these administrative services in-house. At this time, staff does not have the specific expertise to execute this function. Although this can be acquired, it would result in collection delays for FY 2021-22.
• Direct staff to perform a competitive solicitation for these services before recommending a provider for award. This will result in collection delays for FY 2021-22.
FINANCIAL IMPACT
Funds for this work are budgeted annually in the Public Works Department Budget under Sewer Maintenance (50141600). Any contract amount beyond FY 2021-22 will be subject to future available appropriations approved by the City Council. There is no impact to the General Fund.
|
Contract |
(CPI) |
CPI Total Each Year |
TOTAL |
|
FY21-22 |
0% |
$ 0.00 |
$ 52,383.00 |
|
FY22-23 |
3% |
$1,571.49 |
$ 53,954.49 |
|
FY23-24 |
3% |
$1,618.63 |
$ 55,573.12 |
|
FY24-25 |
3% |
$1,667.19 |
$ 57,240.31 |
|
FY25-26 |
3% |
$1,717.21 |
$ 58,957.52 |
|
TOTAL |
12% |
$6,574.52 |
$278,108.44 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with California Environmental Quality Act (CEQA), this project is categorically exempt under CEQA Guidelines Section 15308, Actions by Regulatory Agencies for Protection of the Environment.
CLIMATE IMPACTS
There are no climate impacts to this report.
RECOMMENDATION
Authorize the City Manager to execute a five-year agreement with NBS for sewer service charge tax roll administrative services in an amount not to exceed $278,108.44.
CITY MANAGER RECOMMENDATION
The City Manager concurs with the recommendation to authorize the City Manager to execute a five-year agreement with NBS for sewer service charge tax roll for a cost not to exceed $278,108 over 5 years.
Respectfully submitted,
Erin Smith, Public Works Director
Financial Impact section reviewed,
Annie To, Finance Director
Exhibit:
1. Agreement
cc: Eric Levitt, City Manager
Gerry Beaudin, Assistant City Manager