10. CONSIDER RATIFICATION OF CONTRACT WITH TURNSTONE CONSULTING FOR PREPARATION OF EIR OF WATER CREDIT TRANSFER PROGRAM
Staff Contact: Henrietta Stern Cost Estimate: $155,400 (DEIR only)
General Counsel Approval: has not reviewed staff note
Committee Recommendation: The Administrative Committee reviewed this item at its April 14, 2003 meeting and recommended approval, pending receipt of revised budget information.
CEQA Compliance: Not applicable for retention of consultant
SUMMARY: At its March 17, 2003 meeting, the Board determined that Turnstone Consultants of San Francisco should be retained to prepare an Environmental Impact Report (EIR) that evaluates the environmental effects associated with a water credit transfer program. The Board further directed that Directors Henson and Lindstrom should negotiate with Turnstone to refine the scope of work, and address concerns about extensive reliance on staff work products. Two phone conferences between Turnstone, Directors Henson and Lindstrom, District special counsel Clement Shute, and General Manager Fran Farina were held on March 21 and April 8, 2003 for this purpose. Water Demand Division Manager Stephanie Pintar also participated in the April 8 phone conference. District staff has provided Turnstone copies of studies that have been performed on the water credit transfer program in the past few years. An estimated 60 acre-feet has been involved in water credit transfers in the past 10 years.
The Board will consider the revised scope of work, fee schedule and milestone schedule as shown in Exhibits 10-A, B and C. The scope of work is provided as Exhibit 10-A. As shown in Exhibit 10-B, the not-to-exceed amount of the contract is $155,400 for preparation of a Draft EIR, including direct costs such as printing. As shown in Exhibit 10-C, the Draft EIR is scheduled for completion in late August 2003. A scope of work and cost estimate for completion of a Final EIR will be prepared after comments on the Draft EIR are received in October 2003.
The focused EIR will evaluate four alternatives (with some potential refinement), ranging from least to most restrictive, as follows:
Alt 1 = Rule 28 is reinstated (assumed to be the No Project alternative pursuant to Ordinances No. 107 and 108).
Alt 2= Enact amended water credit transfer program as described in Ordinance 101.
Alt 3= Enact water credit transfer program based on Ordinance 101 with the further restriction that only affordable housing can be the recipient of a transfer. The Board offered guidance on March 17, 2003 on what the term “affordable housing” should include. This alternative may also have variations such as (a) documented water use must be available for the donor site in order for a transfer to be approved and/or (b) the set-aside should be 50% rather than the 35% shown in Ordinance No. 101.
Alt 4 = Eliminate the water credit transfer program.
The revised scope of work includes the following major tasks:
Task 1- Prepare project description
Task 2- Prepare EIR Notice of Preparation and hold scoping meetings
Task 3- Prepare detailed EIR format and final approach for approval
Task 4- Compile background information from MPWMD staff and other sources
Task 5- Prepare economic analysis of growth potential
Task 6- Prepare administrative draft EIR for internal review
Task 7- Prepare Draft EIR and attend public hearing to receive oral comments
Task 8- Participate in meetings and phone consultations
RECOMMENDATION: Staff recommends that the Board authorize the General Manager to retain Turnstone Consulting for a not-to-exceed amount of $155,400 pursuant to the scope of work, fee schedule and milestone schedule shown as Exhibits 10-A, B and C.
The revised scope of work was reviewed by the Administrative Committee at its April 14, 2003 meeting. The committee voted 2-1 to recommend approval of the staff recommendation, pending receipt of budget information.
BACKGROUND: At its February 27, 2003 meeting, the Board directed staff to work with a sole source consultant to develop a scope of work for a focused EIR on the environmental impacts of having or not having a water credit transfer program. The stated goal at that time was completion of the Final EIR no later than September 30, 2003. The EIR should analyze program goals and determine whether the program is capable of meeting the goals. Included in the program goals should be water for community projects such as affordable or workforce housing. The EIR will be evaluated at the program level, except for applications received on or before a specified date prior to completion of the Draft EIR; these applications will be evaluated at the project level in the EIR. CEQA review of applications received after the specified date will tier off the Final EIR. Regarding administrative practice, the Board also directed on February 27, 2003 that all applications for water credit transfer approval shall be considered by the Board for determination after the EIR is certified.
At its March 17, 2003 meeting, the Board determined that Turnstone Consultants of San Francisco should be retained to prepare an Environmental Impact Report (EIR) that evaluates the environmental effects associated with a water credit transfer program. The Board further directed that Directors Henson and Lindstrom should negotiate with Turnstone to refine the scope of work, and address concerns about extensive reliance on staff work products.
The first reading of Ordinance No. 107 to reinstate the water credit transfer program (Rule 28-B) was also approved on March 17, 2003. On April 2, 2003, the Board approved the first reading of Ordinance No. 108 to clarify some of the processes and vague terminology contained in Rule 28-B). Specifically, decisions about water credit transfers shall be made by the MPWMD Board of Directors and are considered to be discretionary decisions subject to CEQA. The second reading for both ordinances is scheduled for May 19, 2003.
DISCUSSION: The Turnstone revised scope of work for the Draft EIR for the water credit transfer program dated April 14, 2003 includes the following changes from the March 2003 version:
The estimated cost has increased from $110,000 to $155,400, an increase of $45,400, which reflects the above changes. As shown in Exhibit 10-B, Turnstone, rather than MPWMD staff, will prepare the project description, Notice of Preparation and hold scoping hearings. An economic analysis will be conducted at an estimated cost of $42,200.
As shown in Exhibit 10-C, the schedule to produce the Draft EIR is about two months later than originally anticipated. This delay is primarily due to the time expended since March 17, 2003 to revise the scope of work, and the time needed prepare additional work products, especially the economic analysis.
IMPACTS ON RESOURCES: The $155,400 amount is currently not budgeted for Fiscal Year 2002-2003, but most of it will be invoiced in year 2003-2004. Thus, anticipated expenditures can be included in the FY 2003-2004 budget process. The scope of work still relies on staff research, data products and analysis, particularly for Tasks 1 and 4. Thus, it is anticipated that extensive staff time will still be needed to help initiate the project and respond to consultant questions.
4/16/03, FINAL based on FF edits and consultant info 3 pp Exhibits from consultant e-mail