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HomeMy WebLinkAboutC9. Reclemation and Development Grant Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brian Heaston, Project Engineer Craig Woolard, Public Works Director SUBJECT: Authorize the City Manager to sign Reclamation and Development Grant Agreement No. RITP-16-0121 with the CARDD Division of MT DNRC granting $50,000 to the City of Bozeman to complete a hydrogeologic investigation and groundwater model necessary to establish a groundwater mitigation bank in the Gallatin Valley, and authorize the City Manager to sign Amendment No. 1 to the Professional Services Agreement with Respec to incorporate grant funding and tasks into the Groundwater Investigation project. MEETING DATE: April 11, 2016 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to sign Reclamation and Development Grant Agreement No. RITP-16-0121 with the CARDD Division of MT DNRC granting $50,000 to the City of Bozeman to complete a hydrogeologic investigation and groundwater model necessary to establish a groundwater mitigation bank in the Gallatin Valley, and authorize the City Manager to sign Amendment No. 1 to the Professional Services Agreement with Respec to incorporate grant funding and tasks into the Groundwater Investigation project. BACKGROUND: A central component of the Groundwater Investigation project currently underway by Respec is the completion of a hydrogeologic investigation and development of a groundwater model to simulate groundwater/surface water interactions for potential municipal well field sites in Gallatin Valley. The model is utilized to assess impacts to surface waters caused by proposed municipal groundwater withdrawals such that strategies to offset adverse affects to existing water rights can be prepared. To put groundwater to municipal beneficial use a water right permit must be obtained from the DNRC. The permit will only be granted if adverse affects to existing water rights are sufficiently offset by a mitigation plan and mitigation water approved by the DNRC. As the Commission is aware, city staff is collaborating with a stakeholder group consisting of agricultural and conservation organizations to work towards the development of a groundwater mitigation bank for the Gallatin Valley. The bank could potentially service the mitigation water requirements for city groundwater permits as well as groundwater permits for other developments in the valley. Water banking is a concept that has successfully been implemented in various locations in other western states facing water supply challenges similar to those occurring in the Gallatin. The 2015 Montana State Water Plan prepared by DNRC recommends that water banking be pursued as a solution to shifting water use patterns, particularly in closed basins like the Gallatin. To assist the mitigation bank development process the DNRC has awarded the city $50,000 through its Reclamation and Development Grant Program. The grant provides funding to enhance the groundwater model effort by Respec for the city’s Groundwater Investigation project. The grant funds tasks to build 187 additional temporal and spatial detail into the model which affords higher functionality for mitigation bank planning purposes. Respec was procured by the city to perform professional engineering services for the Groundwater Investigation project, including a hydrogeologic investigation and groundwater model, pursuant to Title 18, Chapter 8, Montana Code Annotated. The RDG Agreement enhances the modeling tasks for which Respec is already procured to provide professional services thus separate procurement action is not necessary. The scope and fee of the Professional Services Agreement with Respec is amended by PSA Amendment No. 1 to incorporate the funding and tasks of the RDG Agreement. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: The grant increases the budget of the Groundwater Investigation project by $50,000. Grant funds are disbursed to the city upon submittal of claims for completed work. Attachments: RDG Agreement No. RITP-16-0121 PSA Amendment No. 1 with Respec City of Bozeman Grant Routing Cover Sheet Report compiled on: April 1, 2016 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT FOR GROUNDWATER INVESTIGATION SERVICES THIS AGREEMENT is made as of this ________ day of ____________________, 2016, between THE CITY OF BOZEMAN, a Municipal Corporation, P.O. Box 1230, Bozeman, Montana, 59771-1230, herein referred to as OWNER, and RE/SPEC Inc., 3810 Valley Commons Drive #4, Bozeman, Montana, 59718-6477, an Engineering-Consulting Firm herein referred to as ENGINEER. WHEREAS, the parties have entered into a Professional Services Agreement dated August 24, 2015, herein referred to as Original Agreement for professional engineering services; and WHEREAS, the parties desire to amend the provisions of this Agreement to expand the current hydrogeologic investigation and develop a groundwater model necessary to establish a groundwater mitigation bank in the Gallatin Valley. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED HEREIN, the parties agree as follows: The conditions and provisions set forth in the attached RECLAMATION AND DEVELOPMENT GRANT (RDG) AGREEMENT (RITP-16-0121), INCLUDING ATTACHMENT A (SCOPE OF WORK), ATTACHMENT B (BUDGET), AND ATTACHMENT C (REPORTING AND REIMBURSEMENT REQUIREMENTS) are hereby incorporated in and made a part of this Agreement. ARTICLE 1 - ENGINEERING SERVICES Section 1.1 of the Original Agreement is amended as follows: Work tasks (Tasks 01 – 04) as described in Attachment A (Scope of Work) of the RDG Agreement are added as a second phase of the project titled Additional Groundwater Model Detail: Additional Groundwater Model Detail Task 01: Build Additional Temporal Detail into Model (August 2016 – October 2016) Task 02: Build Additional Spatial Detail into Model (November 2016 – January 2017) Task 03: Specific Steps toward Establishing a Water Bank (February 2017 – April 2017) Task 04: Groundwater Modeling Report (May 2017 – July 2017) ARTICLE 4 - BASIC ENGINEERING SERVICES Section 4.2 is added to the Original Agreement as follows: 4.2. ADDITIONAL GROUNDWATER MODEL DETAIL 204 After written authorization to proceed with the Additional Groundwater Model Detail phase of the project, ENGINEER shall: 4.2.1. Consult with OWNER and OWNER’s identified partners (water bank stakeholders) to clarify and define OWNER's requirements for the Project and review available data. 4.2.2. Advise OWNER as to the necessity of OWNER's providing or obtaining from others, data or services and assist OWNER in obtaining such data or services, as appropriate. 4.2.3. Identify and analyze requirements of governmental authorities having jurisdiction to approve the design of the Project and participate in consultations with such authorities. 4.2.4. Provide analyses of OWNER's planning needs and groundwater model scenarios for prospective mitigation strategies including a water bank. 4.2.5. ENGINEER shall prepare and furnish complete paper and electronic copies of a technical report (“Report”) that includes all data, analyses, and findings from the work completed during this phase of the project.as requested to OWNER, and at the same time furnish copies as directed by OWNER to agencies and/or other parties having regulatory responsibilities or direct financial participation in any part of the Project. Furnish 3 printed copies and an electronic copy (in searchable PDF format) of the Report and review in person with OWNER. 4.2.6. Furnish all hydrogeologic modeling files in electronic format to OWNER. The Additional Groundwater Model Detail phase of the project will be completed and work products submitted within 455 calendar days following written authorization from OWNER to ENGINEER to proceed with this phase of the project (the 455 calendar days to complete and submit final work products is based on authorization to proceed from the OWNER no later than May 2, 2016). ARTICLE 6 - COMPENSATION FOR ENGINEERING SERVICE Section 6.2 is added to the Original Agreement as follows: 6.2 LUMP SUM AGREEMENT FOR ADDITIONAL GROUNDWATER MODEL DETAIL 6.2.1. Payment. For completing Additional Groundwater Model Detail services performed as Basic Engineering Services under Section 4.2 of this Agreement the OWNER shall pay a total sum in the amount of $ 50,000.00 for such services. Attachment B (Budget) of the RDG Agreement provides a detailed breakdown of costs for each work task. 6.2.2. Payment Schedule. Total cumulative payments for Additional Groundwater Model Detail (Section 4.2) shall not exceed the following ceilings: $ 45,000.00 (90% of fee) until all work tasks are complete and the final groundwater modeling report and all hydrogeologic model files have been submitted to the OWNER. 205 206 207