During the long and protracted debate over the surface water project, one of the chief concerns of most – regardless of which side of the issue they found themselves on – was the cost of the water project and the impact on water rates.
While Measure I passed by a 54-46 margin in early March, the Woodland-Davis Clean Water Agency has continued its efforts, post-election, to reduce costs overall to the project, with the hope that it will reduce the need for water rate increases.
Right now, rates are set to nearly triple over the next five years, with many concerned about the impact of rate increases on low-income and fixed-income residents.
The Woodland-Davis Clean Water Agency announced on Thursday that it has taken several important actions to further reduce surface water project costs, in their words, “living up to its commitment to soften the associated rate impacts to water utility consumers in Woodland and Davis.”
On Thursday, the agency’s board adopted an amendment to its request for proposals for a Design-Build-Operate (DBO) contractor.
The DBO process, which supporters of the process claim to be the least costly means to implement the project, the agency says, “will result in a single contractor that will design and build the water treatment plant and pipelines, and then operate the facility for a fixed price for a specified number of years, currently set at 15.”
Generally speaking, according to a release, “The amendment modifies some of the terms and technical aspects of the proposal request document.”
Most significantly, the release says, “It includes: 1) a 10 percent reduction in the maximum project cost; 2) a requirement that competitive bidding be used for the selection of construction subcontractors and equipment, which is expected to account for 70 percent of all work; and 3) a requirement that the contractor allow for ‘open book’ reviews by the Agency of profit and overhead margins for the 30 percent of the work the contractor will perform directly.”
“With this amendment, we’ve set a very aggressive maximum price by driving down the cost of these project elements to $151.5 million. That’s a 20 percent decrease from original engineering estimates,” said Bill Marble, Chair of the Agency and a member of the Woodland City Council. “This will directly translate into costs savings and lessen pressure on rates over the long run.”
According to the release, “Under the amended request for proposals, proposers will be deemed responsive if they can, among other things: demonstrate an ability to meet or beat the Agency’s maximum project cost; outline a plan for the competitive subcontracting of approximately 70 percent of construction work, which is expected to include materials and the construction of the pipelines and water treatment facility; and specify a process for an ‘open book’ review of costs for the roughly 30 percent of the work they will perform directly, such as project design.”
“Today’s actions continued the Agency’s work to fiercely protect ratepayers’ financial interests by lowering project costs,” said Joe Krovoza, Vice-Chair of the Agency and Mayor of Davis. “In addition, we’ll satisfy our requirements for absolute transparency and better ensure the contractor’s pricing is competitive and comparable to industry norms.”
According to the agency’s general manager, Dennis Diemer, the total costs for the water treatment facility, pipelines and the agency’s share of the intake facility is now $234.75 million in 2013, which is down from the 2012 estimate of $245 million.
On other fronts, the agency says it will continue “to pursue state and federal assistance in the form of grants and low-interest loans, again with a goal of reducing the costs for water utility ratepayers. Word on the status of an application for the State Revolving Fund program, which provides very low-interest loans to municipal agencies, is expected within the next few weeks.”
While the agency clearly trumpets some successes here, the Vanguard remains concerned that most of these savings will have only small impacts on rates that are still expected to rise quickly in the coming years, with the just-approved Prop 218 process clearing the way for steep rate increases.
The Vanguard is also concerned that the water rate increases are now set to leave the city of Davis with a $3 million structural deficit by 2018.
—David M. Greenwald reporting
suddenly no one care about water anymore
[quote]suddenly no one care about water anymore[/quote]
I think that may change very shortly when the WAC takes up some additional issues at upcoming meetings.
I do not know what the scope of their ongoing input will be, but I doubt the controversies have ended.
Agenda
Water Advisory Committee
Community Chambers, 23 Russell Blvd
April 25, 2013 6:30 p.m.
1. Call to Order and Roll Call
2. Approval of Agenda
3. Approval of minutes from 10/11/12, 10/18/12, and 10/25/12 meetings
4. Public Comment (At this time, any member of the public may comment at this time on any item not on the agenda. Comments are usually limited to no more than 3 minutes per speaker. This item is a time for the committee to receive comments; except for brief questions for clarification, no discussion or action may be taken on any item that is not on the agenda; Public comment may be continued to the end of the meeting if the time allotted for public comment expires )
5. (30 min) Fluoridation presentation (pros) – Series of speakers, see attached list
6.(30 min) Q&A session with speakers
7.(20 min) Staff and Committee brief communications – Long Range Calendar
8.Adjourn Meeting
Agenda materials can be viewed at [url]http://city-council.cityofdavis.org/on-going-committees/water-advisory-committee/agenda—april-25-2013[/url]