TO: Housing Authority Commissioners
FROM: Jennifer Palmer, Executive Director Housing Authority
REPORT BY: Alex Carrasco, Project Manager
SUBJECT: Authorization for the purchase of capital asset, contract amendment, and budget amendment
RECOMMENDATION
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Authorize the purchase of a capital asset for a Large Volume Lead/Lag System (Arsenic Water Treatment); approve and authorize Amendment No. 1 to Agreement No. 250009B (NCHA) with Environmental Aqua; and approve the related Budget Amendment. (Fiscal Impact: $17,654 Expense; Housing Authority Fund; Not Budgeted; Discretionary)
[4/5 Vote Required]
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BACKGROUND
The Napa County Housing Authority contracts with Environmental Aqua (Operator) for all water treatment operations and maintenance of the Calistoga Farmworker Center Public Water System (PWS). The Operator is certified by the state for treatment and has over thirty-eight (38) years of experience in the water improvement industry. The Operator conducts routine and ongoing water testing and monitors lab results to ensure safe, healthy drinking water to all lodgers and property management staff living onsite. Routine maintenance at this PWS includes addition of media to remove arsenic, an element found naturally in underground raw water. At the end of fiscal year 2024, lab results detected increased concentration of arsenic in the raw, untreated water. The Operator treated the water with media to counteract the concentration and prevent exposure to lodgers and staff. An analysis of the water treatment system and its equipment determined that the treatment system needed to be replaced based on three factors: the equipment was reaching the end of its useful life (it was installed in 2006), there was wear on the absorption column valves and seals, and the Operator has detected higher concentrations of arsenic in the raw water. The Operator recommends emergency replacement of the water treatment system to install a more modern system (Large-Volume Lead/Lag System), which will provide better absorption of arsenic, decrease future operational costs, and continue to provide safe drinking water for years to come.
Requested Actions:
1. Authorize the purchase of a capital asset in the amount of $17,654 for the Large Volume Lead/Lag System;
2. Approve and authorize Amendment No. 1 to Agreement No. 250009B (NCHA) with Environmental Aqua Inc. to reduce routine services by $17,654 and increasing non-routine services by $17,654 for the Large Volume Lead/Lag System; rescind and replace Exhibit A of the Agreement with Exhibit A-2. No change to contract maximum of $121,557; and
3. Approve a Budget Amendment to Increase appropriations in Napa County Housing Authority (Fund 5060, Subdivision 5060501, Account 55400) by $17,654 for the purchase of Large Volume Lead/Lag system offset by decrease of $17,654 in Water Treatment Services (Fund 5060, Subdivision 5060501, Account 52383).
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: |
This is a matter of health and safety for onsite residents. Emergency replacement of the system is a one-time investment that will ensure safe drinking water for years to come and reduce operational costs. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Ongoing preventative maintenance to the water treatment system will be budgeted in future fiscal years. Reduced operational costs (purchasing less absorption media). |
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Consequences if not approved: |
The existing equipment may fail resulting in expensive repairs, reduced water quality, increased arsenic levels, and environmental health violations. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State of CEQA Guidelines) and therefore CEQA is not applicable.