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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to grant an increase of $200,000.00 in the contract price for Contract No. CS-1820 “Drainage Charge Program Consulting Services” with Galardi Rothstein Group, LLC (Consultant), and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
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Agenda of December 21, 2016
Item No. 16-0194
Proposed Contract No. CS-1820
Change Order No. 1
Amount: $200,000.00
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: DWSD Contract No. CS-1820, Change Order No. 1
“Drainage Charge Program Consulting Services”
Consultant: Galardi Rothstein Group
MOTION
Upon recommendation of Marcus Hudson, Chief Financial Officer Officer, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to grant an increase of $200,000.00 in the contract price for Contract No. CS-1820 “Drainage Charge Program Consulting Services” with Galardi Rothstein Group LLC (Consultant), and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
JUSTIFICATION
The requested contract amendment will provide funding to continue the Drainage Charge Program’s management and financial/rate analysis support through the remainder of the fiscal year. Contract funding will be exhausted earlier than anticipated due to (at least) three factors that have resulted in incurrence of more time and expense than originally anticipated for work under this contract:
1. Clergy-Community Drainage Coalition Support - a new requirement for support of a range of Drainage Program Management activities associated with this initiative including supporting the planning, technical work, meeting facilitation, and documentation of outcomes of this initiative.
2. GLWA - DWSD cost allocation representation - more involved interaction due to cost allocation discussions regarding Sewer Shares (e.g., strength of flow, attribution of unmetered flows) and A&G allocations.
3. Stakeholder (NGO, inter-departmental) engagement - more substantial efforts to communicate and coordinate activities across the plethora of actors in the stormwater management arena.
BACKGROUND
CS-1820 was entered in May 2016 to provide program management support for DWSD’s drainage charge and green infrastructure credit program, and to provide DWSD with general utility strategic/financial planning consulting services. Implementation of the drainage charge and green infrastructure credit program has proven to be particularly complicated, requiring coordination of a large and disparate team of DWSD and City of Detroit staff, consultants and non-governmental organizations. Program management has involved coordination of multiple tracks of activities (e.g., public relations, credit development and administration, billing and collection, technical/engineering analysis, rate/financial planning and analysis, legal review). Similarly, several issues have arisen in the context of GLWA rate analyses and other DWSD initiatives (e.g., Minimizing Lead in Water) on which Galardi Rothstein Group Principal Eric Rothstein has been engaged.
PROJECT TASKS
• Drainage Charge Implementation Program Management -. Supervise, guide and direct activities on all program tracks (Financial, IT/Billing, Public Relations, Customer Service, Legal, Green Infrastructure/Credits), address legal issues related to current and potential drainage charge challenges, and support engagement with Mayor’s Office and other City departments and agencies.
• DWSD financial planning and rate setting consulting -
o Provide consulting support for review of existing GLWA/DWSD cost allocation methodologies (referencing AWWA/WEF standard practices).
o Provide consulting support for planning implementation of acceptable recommendations of the Detroit Blue Ribbon Panel on Affordability including, for example, structuring of inclining block rate options.
o Subcontractor Development / Mentorship - support for development of DWSD programs to support the development of the local labor and contracting markets for delivery of DWSD capital projects.
• General utility management consulting support - provide, as requested, support to developing DWSD management team in areas of subject matter expertise (e.g., strategic planning, wet weather consent decrees, financial management support of asset management).
o Facilitate engagement of DWSD management team in national water and wastewater utility professional societies (e.g., AWWA, WEF, NACWA).
PROJECT MANAGEMENT STATUS
A. Start Work Date: May 1, 2016
B. Contract Completion Date: June 30, 2017
E. Original Contract Amount: $243,000.00
F. Change Order No. 1: $200,000.00
G. Revised Contract Price: $443,000.00
CS-1820 Change Order No. 1 was presented to the Finance Committee on December 12, 2016 and is an Operations and Maintenance (O&M) budgeted item.