REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  June  6, 2017
CATEGORY:  Regular - Public Works-4.

SUBJECT:

County Service Area No. 2 (Sugarloaf Water) - Emergency Construction Contract Award

Supervisorial District No. :  4

DEPARTMENT CONTACT:  Pat Minturn, Public Works Director, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

Take the following actions on behalf of County Service Area (CSA) No. 2-Sugarloaf Water: (1) Adopt a resolution which finds that an emergency exists that will not permit a delay resulting from a competitive solicitation for bids to improve the well and authorizes the Chairman to sign a contract with Tico Construction in an amount not to exceed $155,000 to construct wellhead improvements; (2) find the project to construct wellhead improvements to be exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15269; (3) approve a budget amendment increasing appropriations and revenue by $176,000 in the CSA No. 2 Sugarloaf Water Admin budget; and (4) authorize the fund to be in a negative cash position not to exceed $176,000 for short periods of time while awaiting reimbursement from the State during the project.

SUMMARY

A state-funded emergency project is proposed to upgrade CSA No. 2-Sugarloaf Water.

DISCUSSION

County Service Area No. 2 provides potable water to 62 homes in Sugarloaf. The system was constructed by the developer and subsequently became a CSA. Water is supplied from a surface water source (Spring) and a Well.

The Spring is presently offline. The State Water Resources Control Board, Division of Drinking Water (DDW), considers the Spring treatment technology to be unapproved. Grant applications have been unsuccessful.

The Well is presently in service. Chlorine is applied as a disinfectant. Bacteria has not been detected in the treated water but DDW deems the treatment to be unreliable. Bacteria has been detected in the raw water so DDW has directed the issuance of a boil notice. Bottled water is presently available to customers.

DDW has offered a grant to upgrade the Well.  A filter, telemetry and shelter will be added.  DDW staff directed the CSA to solicit a contractor’s quote to verify the Engineer’s Estimate.  Tico Construction (Tico) provided a quote of $155,000.  Tico is a reputable local company with experience in water and wastewater facilities.  Their quote was below the Engineer’s Estimate.

DDW Staff considers the project to be “immediately needed to address a health and safety risk to the community.”  DDW supports award of the contract to Tico and will pay all associated costs including engineering and inspection.  Public Contact Code sections 1102 and 22050 provide for the finding of an emergency and waiver of competitive bidding requirements in cases of emergency.

ALTERNATIVES

The Board may decline to make the emergency finding and approve the contract award to Tico.  Plans and specifications could be prepared and circulated for competitive bidding.  The project would be delayed by 4-6 months.  Any savings would potentially accrue to DDW and any additional costs to the CSA.

OTHER AGENCY INVOLVEMENT

DDW has been involved throughout the process. County Counsel has reviewed and approved the resolution and contract as to form.  Risk Management has reviewed and approved the contract.  The recommendations have been reviewed by the County Administrative Office.

FINANCING

CSA water rate revenues total approximately $36,000 per year.  Some consultant and administrative costs related to the emergency have been funded by the Water Agency. The proposed Well modifications will be funded through a $176,000 grant. The proposed budget amendment would provide sufficient budget in the Adopted Fiscal Year 2016/17 CSA No. 2 Sugarloaf Water Admin fund. There is no General Fund impact.