HomeMy WebLinkAbout03.a. Professional Consulting Services Agreement with Raftelis Financial Consultants $470,000 feasibility evaluation for Mt. View Sanitary DistrictPage 1 of 3
Item 3.a.
DCENTRALSAN
MEETING DATE: AUGUST20, 2024
BOARD OF DIRECTORS
POSITION PAPER
DRAFT
SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL
MANAGER TO EXECUTE A PROFESSIONAL CONSULTING SERVICES
AGREEMENT WITH RAFTELIS FINANCIAL CONSULTANTS, INC., IN AN
AMOUNT NOT TO EXCEED $470,000 FOR THE FEASIBILITY EVALUATION
FOR CONSOLIDATION WITH MT. VIEW SANITARY DISTRICT AND FIND
THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITYACT (CEQA)
SUBMITTED BY: INITIATING DEPARTMENT:
DANA LAWSON, SENIOR ENGINEER ENG-PDS-DIVISION MANAGER
REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
PHILLIEBER, DEPUTYGM -ADMINISTRATION
GREG NORBY, DEPUTY GM - ENGINEERING & OPERATIONS
ROGER S. BAILEY, GENERAL MANAGER
ISSUE
The Board of Directors' (Board) authorization is required for the General Manager to execute professional
consulting services agreements in an amount greater than $200,000.
BACKGROUND
The Municipal Service Review on Wastewater from the Contra Costa County Local Agency Formation
Commission (LAFCO) is recommending that a study be conducted and completed by January 1, 2027 to
evaluate the feasibility of a consolidation between Central Contra Costa Sanitary District (Central San) and
Mt. View Sanitary District (MVSD).
In October 2023, a Memorandum of Understanding Between Central Contra Costa Sanitary District and
Mt. View Sanitary District For a Feasibility Evaluation of a Potential Consolidation ("MOU") was approved
by the respective Board of Directors of each agency. An amendment to the MOU was approved in
February 2024, to define the role and responsibilities of each agency related to working with the selected
consultant for the feasibility study.
August 20, 2024 REEP Committee Meeting Agenda Packet - Page 3 of 32
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Staff prepared and posted a Request for Proposal (RFP) to PlanetBids on April 8, 2024, notifying all
interested firms of the proposed scope, qualifications, and schedule. The study is to investigate all
benefits, costs, issues, challenges, and barriers related to a potential consolidation for both agency's
interests and their respective ratepayers.
One proposal was received and passed initial screening for responsiveness and compliance with the
published request for proposals. Subsequently, the proposal was reviewed by a selection committee. The
selection committee also met with the proposer's team on July 9. After minor negotiation to fine-tune the
scope, schedule, and budget, the selection committee is recommending to proceed with the study after
receiving consent from MVSD pursuant to Section 4(a)(6) of the First Amendment to the Memorandum of
Understanding Between Central Contra Costa Sanitary District and Mt. View Sanitary District For a
Feasibility Evaluation of a Potential Consolidation ("MOU"). This study is expected to commence
September 2024 and be completed by June 2026.
California Environmental Quality Act (CEQA)
Staff has concluded that these actions are exempt from CEQA under District CEQA Guidelines Section
15262, since it allows for further planning and feasibility studies for possible future actions which Central
San has not approved, adopted, or funded, and the outcome of these tasks will not have a legally binding
effect on later activities. Approval of these actions will establish the Board's independent finding that these
agreements are exempt from CEQA. Central San will conduct an environmental evaluation of any
environmental -altering, physical project that is proposed in the future as a result of these studies to
determine the need for any additional CEQA documentation.
ALTERNATIVES/CONSIDERATIONS
The Board may decline authorization of the agreement. This is not recommended as it does not align with
the MO executed in October 2023 by both Districts to evaluate the feasibility of a consolidation.
FINANCIAL IMPACTS
Central San agreed to pay for the cost of the study in the MOU. This first phase of evaluation has a cost
ceiling of $470,000. Depending on the findings of this study, additional costs and efforts may be warranted
and returned to the Board in the near future.
This effort is included in the FY 2024/25 Capital Improvement Budget on Page 291 in Table 4 - General
Improvements (GI) Program Budget/Project Summary.
COMMITTEE RECOMMENDATION
The Real Estate, Environmental and Planning Committee reviewed this matter at the August 20, 2024
Committee Meeting and recommended
RECOMMENDED BOARD ACTION
Staff recommends the Board authorize the General Manager to execute the agreement with Raftelis
Financial Consultants, I nc., in an amount not to exceed $470,000, and find that the Project is exempt from
CEQA.
August 20, 2024 REEP Committee Meeting Agenda Packet - Page 4 of 32
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Strategic Plan Tie -In
GOAL ONE: Customer and Community
Strategy 1 - Deliver high -quality customer service, Strategy 2 - Promote initiatives to advance affordable and equitable
access to services, Strategy 3 - Build neighborhood and industry relations
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 3 - Maintain financial stability and sustainability
August 20, 2024 REEP Committee Meeting Agenda Packet - Page 5 of 32