Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors, Acting as the Governing Board of County Service Areas No. 7 and No. 11
From: Ann M. Stillman, Director of Public Works
Subject: Certified Operators for County Maintained Small Water Systems
RECOMMENDATION:
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Acting as the Governing Board of County Service Areas No. 7 and No. 11, adopt a resolution authorizing:
A) The President of the Board of Supervisors to execute an agreement with Bracewell Engineering, Inc., to provide operation and maintenance services for County-maintained small water systems, for the term of May 20, 2025 through May 19, 2030, in an amount not to exceed $990,000; and
B) The Director of Public Works, or designee, to execute amendments, which modify the County’s maximum fiscal obligation by no more than $500,000 in aggregate, for as-needed services so long as the modified term and/or services are within the current or revised fiscal provision.
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BACKGROUND:
On November 3, 2015, this Board adopted Resolution No. 074168, which authorized an agreement with Bracewell Engineering, Inc. (BEI) to provide operation and maintenance services for County maintained small water and wastewater systems for a period of three years through October 22, 2018, for a not-to-exceed amount of $500,000 (2015 Agreement). The Department of Public Works (Department) conducted a request for proposal (RFP) process in connection with this agreement and received two proposals. This Board adopted Resolution No. 076173 on September 25, 2018, and extended the 2015 Agreement for a period of two years through October 22, 2020, and increased the not- to-exceed amount by $350,000 for a new not-to-exceed amount of $850,000.
On October 20, 2020, this Board adopted Resolution No. 077810, which authorized an agreement with BEI to provide operation and maintenance services for County maintained small water systems for a period of three years through October 19, 2023 for a not-to-exceed amount of $850,000 with an option to extend the agreement for two (2) additional years for one time and increase the not-to-exceed amount by $25,000. The Department conducted an RFP process in connection with this agreement and received one proposal.
On October 3, 2023, the Agreement was extended for a period of two years through October 19, 2025, and the not-to-exceed amount was increased by $25,000 for a new not-to-exceed amount of $875,000.
DISCUSSION:
State Regulators require certified operators for small water and wastewater systems. Without the professional services of an independent contractor, the Department cannot maintain and operate the CSA 7 and CSA 11 water systems.
The Department issued an RFP prior to the expiration date of the current contract with BEI as staff determined that the remaining balance in the contract would be insufficient to cover the operational and maintenance costs of the water systems through the full contract term ending in October 2025. The contractor selection procedures in the County of San Mateo’s Administrative Memorandum B-1 and Contract Handbook were used to select a contractor for the Water System Operation and Maintenance Services Agreement. The Request for Proposals Process Matrix describing the process and selected firm is attached as Exhibit A.
Proposals were solicited from contractors that have State certified operators with expertise in the operation and maintenance of small water systems as outlined in Exhibit A. The RFP was advertised in the newspaper, information was posted on the Department’s website, engaged CSA 7 and 11 customers were informed of the solicitation, and the County’s eProcurement system was used for the RFP process. There were two (2) proposals submitted, BEI and Natural System Utilities CA, Inc., which were reviewed by the Department.
A panel from the Department reviewed the proposals based on the requirements of the RFP including the suitability of their proposed methods and operational approach to the specific needs of the County-operated systems, the experience and expertise of their staff in managing small water systems comparable to those operated by the County, and the proposed maintenance and operations costs for the duration of the contract period. The proposers were required to provide information relative to their approach for operating and maintaining each of the County maintained water systems (CSA 7 and CSA 11), which are significantly different.
BEI submitted a fully itemized cost proposal with clear separation between the two water systems. The structure aligns with the Department’s internal accounting and billing process, which allows the Department to track expenses by system. The itemized cost proposal allows the Department to evaluate the services and costs for expense reporting.
Natural Systems Utilities CA, Inc. submitted a lump sum cost proposal for the full contract term, which was substantially higher than the other proposal, and did not distinguish between the costs for CSA 7 and CSA 11. The proposal did not include an itemized breakdown for individual services. This format makes it difficult to evaluate how resources are allocated between the two systems.
It is important that proposers provide costs for maintaining each system separately because the CSAs are separate special districts with distinct ratepayers in each CSA.
The Department recommends an agreement with BEI to provide operation and maintenance services for the County-maintained small water systems. The Department has determined the price provided to be fair and reasonable.
The term of the agreement is five (5) years from May 20, 2025, through May 19, 2030.
The Department recommends that this Board authorize the Director of Public Works, or designee, to execute contract amendments, which modify the County’s maximum fiscal obligation by no more than $500,000, in aggregate, for as needed services provided the modified term or services is/are within the current or revised fiscal provisions.
Capital Improvement Projects are anticipated for both water systems within the term of the proposed Agreement and services from the water operator will be required in conjunction with this work. Unanticipated significant water system issues (i.e. major waterline breaks, drought conditions, infrastructure repair, etc.) are not included in the typical operations and maintenance of the water systems and additional capacity in the Agreement is recommended to enable the Department to respond rapidly to ensure water service to customers.
The Department recommends providing additional capacity in the Agreement to provide the required oversight, work performance, and regulatory compliance as needed when unanticipated issues arise. With the uncertainty of the current and future economic environment, potential increases in material or regulatory compliance costs over the course of contract term cannot be predicted. This Agreement supports the operation of the water systems, which is a critical service. Any contract amendments above the Director’s authority would be brought back to this Board for approval.
The County Attorney has reviewed the Request for Proposals and approved the resolution and agreement as to form.
COMMUNITY IMPACT:
Execution of this agreement will allow customers in small and rural communities to continue to have access to drinking water that meets the regulatory standards.
FISCAL IMPACT:
The term of the Agreement is from May 20, 2025 through May 19, 2030 in the amount of $990,000. Amendments in a maximum amount of $500,000, in aggregate, may be executed by the Director, or designee, for unanticipated significant water system issues or capital improvement project support, which are expenses in the CSA 7 and CSA 11 budgets or in a capital improvement project budget.
There is no impact to the General Fund.
Attachment:
Exhibit A - RFP Matrix