ITEM 7

SUBJECT

CONSIDERATION OF A PROPOSED RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO AMEND A SOLE SOURCE CONTRACT WITH SCIENTIFIC APPLICATIONS INTERNATIONAL CORPORATION (SAIC) TO COMPLETE THE ECONOMIC ANALYSIS FOR THE POLICY FOR IMPLEMENTATION OF TOXICS STANDARDS FOR INLAND SURFACE WATERS, ENCLOSED BAYS, AND ESTUARIES OF CALIFORNIA IN FISCAL YEAR (FY) 1999-2000

DISCUSSION

The State Water Resources Control Board (SWRCB) has set a high priority on completing, as soon as possible, the Inland Surface Waters Plan and the Enclosed Bays and Estuaries Plan (ISWP/EBEP).

Currently, the U.S. Environmental Protection Agency (U.S. EPA) is in the process of promulgating the California Toxics Rule (CTR) which will establish numeric water quality criteria for 126 toxic pollutants for California’s rivers, lakes, enclosed bays, and estuaries. As part of the process, U.S. EPA is evaluating the costs, cost-effectiveness, and benefits of implementing the CTR in the State and has contracted with SAIC to do the economic analysis.

Simultaneously, the SWRCB is developing the proposed Policy for Implementation of Toxics Standards for Inland Surface Waters, Enclosed Bays, and Estuaries of California (Policy) which constitutes Phase 1 of the ISWP/EBEP. The Policy will establish an implementation program for the CTR criteria, as well as for existing National Toxics Rule criteria and priority pollutant objectives in basin plans which are not superseded by the CTR. The SWRCB is conducting an economic analysis for the Policy which focuses on the incremental cost of implementing the CTR under the proposed Policy provisions compared with costs of implementing the CTR under existing Regional Water Quality Control Board (RWQCB) permitting practices (which would be the case if the SWRCB does not adopt the Policy).

SWRCB has a contract with SAIC in the amount of $349,800 to conduct the economic analysis for the proposed Policy and to conduct an economic analysis of proposed amendments to the California Ocean Plan. The economic analysis for the proposed Policy includes (1) establishing a baseline of existing RWQCB practices, (2) collecting extensive effluent and ambient water quality monitoring data, (3) costing implementation of the CTR using existing RWQCB practices and eight alternatives (proposed Policy and seven alternative methods of implementation), (4) preparing a technical appendix that details reasonable potential/effluent limit calculations and costing assumptions for 27 sample facilities under the baseline and eight alternative methods of implementation, (5) analyzing and drafting responses to public comments on the September 1997 draft economic analysis, (6) drafting a revised Functional Equivalent Document section on economic considerations, and (7) providing case studies for intake water credit and toxicity provisions of the Policy. The economic analysis for the California Ocean Plan includes a costing analysis for 15 water quality objectives and implementation provisions.

Additional funds are needed for this contract to complete the analysis for the proposed Policy. Specifically, funds are needed to (1) fully and promptly respond to public comments concerning the costs of the revised draft Policy and the economic analysis that is scheduled to be released in November 1999, and (2) if necessary, make revisions to the economic analysis based on public comments.

It is critical that SAIC completes the economic analysis work through continuation of the sole source contract because this work, which is extremely complex, must build upon the economic analysis work that has been done over the past three years and must be completed in approximately two months.

It would be very costly and time consuming to pay another contractor to learn the Policy and related public and technical issues, as well as the assumptions related to this complex economic analysis. In addition, it would not be possible to complete a Request for Proposal contracting process and complete responses to public comments and revise the costing analysis in December 1999 and January 2000 as scheduled; nor would it be efficient or cost-effective to have two contractors working with the same data, having to agree on assumptions and formats, etc. Furthermore, the work that must be completed under this contract amendment involves responding to comments regarding SAIC’s first draft economic analysis. Clearly, SAIC is best able to draft responses and revise the analysis based on public comments.

Staff is requesting SWRCB authorization to increase the contract by $135,000 which would increase the total amount of the contract to $484,800.

Staff is also requesting authorization to extend the term of the contract to June 30, 2002. This time extension would allow SAIC to complete all aspects of the Policy analysis in the event that SWRCB adoption of one or more of the Policy provisions is delayed.

POLICY ISSUE

Should the SWRCB adopt a resolution authorizing the Executive Director or his designee to amend a multi-year sole source contract with SAIC to complete the economic analysis for the Policy for Implementation of Toxics Standards for Inland Surface Waters, Enclosed Bays, and Estuaries of California with an augmentation not to exceed $135,000 from the General Fund in FY 1999-2000 and a contract period extension of one year and four months (until June 30, 2002)?

FISCAL IMPACT

This FY 1999-2000 contract amendment will not exceed the Division of Water Quality current year budget allocation amount of $135,000 from the General Fund.

RWQCB IMPACT

All RWQCBs.

STAFF RECOMMENDATION

That the SWRCB adopt a resolution authorizing the Executive Director or his designee to amend a multi-year sole source contract with SAIC to complete economic analysis for the Policy for Implementation of Toxics Standards for Inland Surface Waters, Enclosed Bays, and Estuaries of California with an augmentation not to exceed $135,000 from the General Fund in FY 1999-2000 and a contract period extension of one year and four months (until June 30, 2002).

WHEREAS:

1.  The California Environmental Protection Agency (Cal/EPA) and the State Water Resources Control Board (SWRCB) have set a high priority on completing, as soon as possible, development of the Inland Surface Waters Plan (ISWP) and the Enclosed Bays and Estuaries Plan (EBEP).

2.  The U.S. Environmental Protection Agency (U.S. EPA) is currently in the process of promulgating the California Toxics Rule (CTR), which will establish numeric water quality criteria for 126 toxic pollutants for California’s rivers, lakes, enclosed bays, and estuaries, and has contracted with SAIC to conduct the economic analysis for the CTR.

3.  Simultaneously, the SWRCB is developing the proposed Policy for Implementation of Toxics Standards for Inland Surface Waters, Enclosed Bays, and Estuaries of California (Policy) which constitutes Phase 1 of the ISWP and EBEP.

4.  The SWRCB currently has a sole source contract with SAIC to conduct an economic analysis for the Policy and the California Ocean Plan amendments.

5.  The SWRCB cannot complete the work for the Policy through the existing contract funding due to the need to fully and promptly respond to a potentially significant number of complex public comments concerning the revised draft Policy and economic analysis that are scheduled to be released in November 1999, and, if necessary, to make revisions to the economic analysis based on public comments.

6.  It is critical that SAIC complete the Policy work through continuation of the sole source contract because the responses to comments and any necessary revisions to the analysis are based on the work SAIC did in the first draft economic analysis.

THEREFORE BE IT RESOLVED THAT:

The SWRCB:

Authorizes the Executive Director or his designee to amend a multi-year sole source contract with SAIC to complete the economic analysis for the Policy for Implementation of Toxics Standards for Inland Surface Waters, Enclosed Bays, and Estuaries of California with an augmentation not to exceed $135,000 from the General Fund in FY 1999-2000 and a contract period extension of one year and four months (until June 30, 2002).
 
 

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on September 16, 1999.

Maureen Marché
Administrative Assistant to the Board