TO: Members of the Governing Board
FROM: Christopher Silke - District Engineer
REPORT BY: Annamaria Martinez - Assistant Engineer
SUBJECT: Amendment No. 4 to Agreement No. 190141B (LBRID) with Specialized Utilities Services Program (SUSP) for Operations and Maintenance Services
RECOMMENDATION
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Approve and authorize Amendment No. 4 to Agreement No. 190141B (LBRID) with Specialized Utility Services Program (SUSP) to increase the total contract amount by $33,000 for a new maximum of $388,200 for Fiscal Year 2023-2024 and approval of a Budget Amendment to increase appropriations in the operations budget. (Fiscal Impact: $70,000 Expense, Lake Berryessa Resort Improvement District (LBRID), Not budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
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 approximately $280,493 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, for a total contract amount of $292,493. 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 2023-24, including the non-scheduled work allowance, is $355,200. This amount represents $343,200 for the annual fee, plus $12,000 allowance for non-scheduled overtime work.
Due to multiple equipment failures at the water treatment plant, sewer lift stations, and transfer pump station at the wastewater treatment and disposal facility, extensive operator overtime above the allowance for the fiscal year, was necessary between July 1, 2023 and March 31, 2024. The unanticipated overtime was necessary to ensure continuous operation of the water plant and to avoid unauthorized wastewater discharges to land or treatment pond overflow - both violations of the District’s waste discharge permit with the Central Valley Regional Water Quality Control Board.
After reviewing the remaining Agreement balance, District staff prepared Amendment No. 4 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 2023 and March 2024 and funds to cover the monthly OM&M charge and projected non-scheduled work for the remaining months in the fiscal year - $33,000. Total expenditure of the requested Amendment amount is not guaranteed, but will be based on actual work performed for the remainder of the year.
Additionally, staff conducted a 9-month budget projection for the fiscal year and including the requested contract amendment for operations, the budget forecast estimates that expenditures will exceed approved appropriations by the end of the fiscal year by $70,000.
Since the adoption of the operating budget in June 2023, multiple PG&E power outages and several unexpected equipment and infrastructure failures in the water and sewer systems required additional operations contractor oversight including maintenance and repair expenses above and beyond budgeted amounts to maintain uninterrupted operations of the water and sewer systems and ensure the water and sewer facilities continued to meet regulatory permit requirements.
While District staff includes budget for a variety of unexpected repairs each year, the actual and projected costs of these repairs in the current fiscal year exceeded the estimated values adopted by the Board during the budget hearings and a budget transfer from available fund balance in the amount of $70,000 is needed to allow the District to continue paying invoices through the end of the fiscal year. Should the requested budget amendment be approved, the estimated remaining fund balance for the end of the current fiscal year is approximately $400,000.
Board approval of Amendment No. 4 to Agreement No. 190141B (LBRID) will increase the total contract amount by $33,000 for a new maximum of $388,200 for Fiscal Year 2023-2024, and approval of the requested budget amendment will provide sufficient appropriations to allow the District to continue paying invoices through the end of the fiscal year.
Requested Actions:
1. Approve and authorize Amendment No. 4 to Agreement No. 190414B SUSP; and
2. Increase appropriations by $70,000 Fund 5220, LBRID Division 52200, offset by use of available fund balance.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Due to additional operator overtime and repair supplies needed in response to the 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. Additionally, the amendment extends the term of the contract to allow District staff sufficient time to issue a competitive RFP for the same services, while focusing on major capital improvement projects already underway. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
None |
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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. |
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.