TO: Housing Authority Commissioners
FROM: Jennifer Palmer, Executive Director
REPORT BY: Alex Carrasco, Project Manager
SUBJECT: Natural Systems Utilities CA, Inc. Agreement No. 260134B (NCHA)
RECOMMENDATION
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Approve and authorize Agreement No. 260134B (NCHA) with Natural Systems Utilities CA, Inc. for a maximum of $113,475 for the partial fiscal year October 1, 2025, through June 30, 2026, then increasing to $125,475 yearly, for the operation of public water systems, including water system inspection, testing, and maintenance at the Calistoga, River Ranch, and Mondavi Farmworker Centers and the related Budget Amendment. (Fiscal Impact: $113,475 Expense; Napa County Housing Authority Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The county-owned farmworker center public water systems have been operated by Environmental Aqua (dba Cal Aqua) for more than ten years. In May, Environmental Aqua's proposed budget for Fiscal Year 2026 included a 36% increase in operational expenses over the previous year. This increase is unsustainable and unfeasible for the program. To mediate the situation, Environmental Aqua's agreement was temporarily amended through September 30, 2025 as staff worked on a request for proposal (RFP). On July 21, 2025, the RFP was released, and the process has since been completed. Natural Systems Utilities CA, Inc. (NSU) is the winning bid. NSU was founded in 1984, with California operations beginning in the early 2010s. Today, NSU operates over 70 water and wastewater systems across California, including several in Napa County. NSU's proposal is fixed for three years, ensuring stability for the program during economic instability. Approval of this agreement allows the Napa County Housing Authority to have a contracted service provider for operation of three public water systems, including water system inspection, testing, maintenance, and non-routine services at the centers.
Requested Action:
1. Approve and auth...
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