HomeMy WebLinkAbout10. Authorize General Managerto execute a professional consulting services agreement with Rafetelis Financial Consultants, Inc. not to exceet $470,000 for feasibility evaluation of a consolidation with Mt. View Sanitary DistrictPage 1 of 3
Item 10.
DCENTRALSAN
MEETING DATE: SEPTEMBER 5, 2024
BOARD OF DIRECTORS
POSITION PAPER
SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL
CONSULTING SERVICES AGREEMENT WITH RAFTELIS FINANCIAL
CONSULTANTS, INC. (RAFTELIS), I N AN AMOUNT NOT TO EXCEED
$470,000 FOR THE FEASIBILITY EVALUATION OF A CONSOLIDATION
WITH MT. VIEW SANITARY DISTRICT, AND FIND THATTHE PROJECT IS
EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT
SUBMITTED BY: INITIATING DEPARTMENT:
DANA LAWSON, SENIOR ENGINEER ENG-PDS-DIVISION MANAGER
REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
PHIL LIEBER, DEPUTYGM -ADMINISTRATION
GREG NORBY, DEPUTY GM - ENGINEERING & OPERATIONS
0 W
Roger S. Bailey Leah Castella
General Manager District Counsel
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
September 5, 2024 Regular Board Meeting Agenda Packet - Page 36 of 66
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Mt. View Sanitary District (MVSD).
I n October 2023, a Memorandum of Understanding Between Central Contra Costa Sanitary District
and Mt. View Sanitary District fora Feasibility Evaluation of Potential Consolidation (MOU) was
approved by the respective Board 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.
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 RFP. Subsequently, the proposal was reviewed by a selection committee who also met with the
proposer's team on July 9, 2024. 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 FirstAmendment to the Memorandum of Understanding Between
Central Contra Costa Sanitary District and Mt. View Sanitary District for a Feasibility Evaluation of a
Potential Consolidation. This study is expected to commence in 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 MOU executed in October 2023 by Central San and MVSD 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 I mprovement Budget on Page 291 in Table 4 - General
Improvements (G 1) Program Budget/Project Summary. Expenses will be tracked against District Project
100079, MVSD Feasibility.
COMMUNITY OUTREACH
On August 8, 2024, MVSD's Board of Directors adopted a motion approving acceptance of the Raftelis
proposal, and recommending that Central San enter into the consulting services agreement with terms
identical to the consulting services agreement included in the RFP.
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COMMITTEE RECOMMENDATION
The Real Estate, Environmental and Planning Committee reviewed this matter at the August 20, 2024
Committee Meeting and recommended approval.
RECOMMENDED BOARD ACTION
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 of
consolidation with Mt. View Sanitary District, and find that the Project is exempt from the California
Environmental Quality Act.
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
September 5, 2024 Regular Board Meeting Agenda Packet - Page 38 of 66