Approve and authorize the Chairman to sign an amendment to the agreement with PACE Engineering, Inc. for additional engineering services related to project planning for improvements to the Cottonwood Wastewater Treatment Plant and Collection System, increasing maximum compensation by $20,300, to a new not-to-exceed maximum of $70,300.

An amendment is proposed to an agreement with PACE Engineering for engineering services related to Cottonwood Sewer.

County Service Area No. 17 (CSA) operates a sewer system in Cottonwood.  The system was constructed in 1982 and discharges to Cottonwood Creek.  On January 6, 2016, the County entered into a Settlement Agreement with the State Water Resources Control Board (SWRCB) to upgrade the system.  On March 10, 2015, the Board accepted a $434,000 planning grant through the Clean Water State Revolving Fund (CWSRF).  On June 23, 2015, the Board adopted new sewer rates and approved a Sewer Master Plan.  On November 17, 2015, the Board approved a contract with National Plant Services to clean and inspect the collection system.

On March 15, 2015, the County entered into a Personal Services Agreement with PACE Engineering, Inc.  Their scope of work included a Project Report and a grant application to the SWRCB.  A single project was proposed to upgrade the treatment plant and collection system.  The project was designed to fit within the maximum grant amount of $6 million.  SWRCB staff has since indicated that the work could be pursued in two phases (treatment, collection).  The CWSRF may provide up to $8 million in total grants in any five-year period.  Staff proposes to fast-track treatment plant improvements.  Collection system improvements would follow and be scaled to match remaining grant funds.  This course of action will require two separate funding applications and an expanded Project Report.  A Request-For-Proposals would be circulated for engineering design and administrative services once the grant funds are approved.

The Board may decline to approve the proposed amendment.  The Board may direct staff to retain another consultant to complete the work.  The Board may also elect to proceed with a single $6 million project.

Staff has collaborated closely with SWRCB staff on funding and engineering issues.  County Counsel has approved the amendment as to form.  Risk Management has reviewed and approved the amendment.  The County Administrative Office has reviewed this recommendation.

Adequate funds have been included in the Adopted FY 2016/17 budget for CSA #17. A CWSRF planning grant will reimburse the CSA for these expenses.  There is no General Fund impact.