TO: Members of the Governing Board of the Lake Berryessa Resort Improvement District
FROM: Christopher Silke - District Engineer
REPORT BY: Annamaria Martinez - Assistant Engineer
SUBJECT: Amendment No. 2 to Agreement No. 190141B (LBRID) with SUSP for O&M Services
RECOMMENDATION
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District Engineer requests approval of and authorization for the Chair to sign Amendment No. 2 to Agreement No. 190141B (LBRID) with Specialized Utility Services Program (SUSP) increasing the amount by $60,000 for a new maximum of $371,325 for Fiscal Year 2021-2022 to provide continued operations, management, and maintenance services for the District's water and wastewater facilities through June 30, 2022.
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EXECUTIVE SUMMARY
Board approval of Amendment No.2 to Agreement No. 190141B (LBRID) will increase the SUSP, contract amount by $60,000 to cover unanticipated non-scheduled work for a new maximum of $371,325 for Fiscal Year 2021-2022, and will allow SUSP to continue operating the District's water and wastewater facilities through June 30, 2022. Amendment No. 2 only modifies total compensation of the contract for Fiscal Year 2021-2022.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Lake Berryessa Resort Improvement District Operations Budget Fund: 5220, Organization: 5220000 |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Due to extensive operator overtime and repair supplies needed in response to the 2021 drought, as well as additional oversight needed for unanticipated afterhours call-outs unrelated to the drought, the non-scheduled work allowance for the year has been exhausted, and the remaining contract balance is insufficient to compensate SUSP for the remainder of the Fiscal Year. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
The recommended increase in compensation is for the current fiscal year only. |
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Consequences if not approved: |
Without the approval of the Amendment, LBRID will be unable to pay SUSP for O&M services throughout the term of the contract. |
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County Strategic Plan pillar addressed: |
Effective and Open Government |
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Additional Information |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
The District is a special district of the State of California organized under the Resort Improvement District Law (Public Resources Code Section 13000 et seq.) for the provision of water and sewer service in an unincorporated portion of the County of Napa, which includes Unit 2 of the Berryessa Estates.
Specialized Utilities Services Program (SUSP) has provided Operation, Management and Maintenance (OM&M) services for the District's water and wastewater facilities since October 2018, after their proposal to provide OM&M services was selected as the most responsive to a published RFP/Q in July 2018. Two Contractors submitted proposals and SUSP were determined to be the more qualified firm, and on October 1, 2018 the Board executed an agreement with SUSP for a base annual amount of $280,492.56 to provide the requested OM&M services of the District's water and wastewater facilities, plus an allowance of $12,000 for non-scheduled work. The term of the agreement allows for automatic annual renewal for five years, adjusted each fiscal year then beginning (July 1 through the next June 30) in an amount equal to the change in the San Francisco Bay Area-All Urban Consumers Price Index for the preceding year. The contract amount for Fiscal Year 2021-22, including the non-scheduled work allowance, is $311,325.
The 2021 Drought severely impacted the District’s water supply, requiring extensive operator overtime and contractor supplies purchased in response to the drought, as well as additional oversight needed for unanticipated afterhours call-outs unrelated to the drought between July 2021 and December 2021, the non-scheduled work allowance for the year has been exceeded, and the remaining contract balance is insufficient to compensate SUSP for the remainder of the Fiscal Year.
After reviewing the remaining Agreement balance, District staff prepared Amendment No. 2 to increase compensation for the current fiscal year in order to cover costs associated with operating and maintaining the District's facilities. The Amendment includes funds to cover the non-scheduled work between July 2021 and December 2021 and funds to cover the monthly OM&M charge and potential non-scheduled work for the remaining months in the fiscal year - $60,000. Total expenditure of the requested Amendment amount is not guaranteed, but will be based on actual work performed for the remainder of the year.
Board approval of Amendment No. 2 to Agreement No. 190141B (LBRID) will increase the contract amount by $60,000 to cover unanticipated non-scheduled work for a new maximum of $371,325 for Fiscal Year 2021-2022 and will allow SUSP to continue operating the District's facilities through June 30, 2022. The schedule of values will revert to the methodology approved with Agreement No. 190141B (LBRID) for future fiscal years, starting July 1, 2022.
SUSP is not a local vendor.