TO: Members of the Governing Board
FROM: Christopher Silke, District Engineer
REPORT BY: Annamaria Martinez, Assistant Engineer
SUBJECT: Amendment No. 1 to Agreement No. 250011B (LBRID) with Specialized Utilities Services Program (SUSP) for Operations and Maintenance Services
RECOMMENDATION
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Approve and authorize Amendment No. 1 to Agreement No. 250011B (LBRID) with Specialized Utility Services Program to increase the maximum from $396,000 to $418,000 for the term through June 30, 2025; and approve a Budget Amendment for additional services and supplies expenses. (Fiscal Impact: $22,000 Expense; Lake Berryessa Resort Improvement District; 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) first began providing Operation, Management and Maintenance (OM&M) services for the District's water and wastewater facilities starting in October 2018, after their proposal to provide OM&M services was selected as the most responsive to a published RFP/Q in July 2018. The 2018 contract expired on June 30, 2024; however, to ensure that the District would see no gaps in operations coverage, the District issued another RFP/Q for OM&M services for a new five-year term on February 27, 2024. Two contractors submitted proposals and SUSP were determined to be the more qualified firm. On June 25, 2024 the Board executed an agreement with SUSP for a base annual amount of approximately $375,600 to provide the requested OM&M services of the District's water and wastewater facilities, plus an allowance of $20,400 for non-scheduled work and as-needed urgent expenses, for a total contract amount of $396,000. 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.
Due to multiple equipment/infrastructure 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, 2024 and February 28, 2025. The unanticipated overtime was necessary to ensure continuous operation of the water plant distribution of potable water to customers as required by the District’s operating permit with the Division of Drinking Water and to avoid unauthorized wastewater discharges to land or treatment pond overflows - 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. 1 to increase compensation for the current fiscal year in order to cover the noted costs associated with operating and maintaining the District's facilities. The Amendment includes funds to cover the non-scheduled work between July 2024 and February 2025 and funds to cover the monthly OM&M charge and projected non-scheduled work for the remaining months in the fiscal year - $22,000. Total expenditure of the requested Amendment amount is not guaranteed, but will be based on actual work performed through June 30, 2025.
Board approval of Amendment No. 1 to Agreement No. 250011B (LBRID) will increase the total contract amount by $22,000 for a new maximum of $418,000 for Fiscal Year 2024-2025 and will provide sufficient contract balance to allow the District to continue paying invoices through June 30, 2025, and approval of the requested budget amendment will provide sufficient appropriations in the LBRID services and supplies budget to allow the District to continue paying invoices through the end of the fiscal year.
Requested Actions:
1. Approve and authorize Amendment No. 1 to Agreement No. 250011B (LBRID) with Specialized Utility Services Program to increase the total contract amount by $22,000 for a new maximum of $418,400 for Fiscal Year 2025-2026; and
2. Increase appropriations by $22,000 in Subdivision 5220000, 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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Where is it budgeted? |
Subdivision 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 winter storms and unexpected equipment failures, 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. |
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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 in full for OM&M services throughout the term of the contract |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is categorically exempt from CEQA pursuant to CEQA Guidelines section 15301, as the operation of existing public facilities involving negligible or no expansion of existing or former use.