HomeMy WebLinkAbout2023-05-23 - AGENDA REPORTS - VISTA CYN RECYCLED WATER CONTRAgenda Item: 15
1. CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: TAA,/�
DATE: May 23, 2023
SUBJECT: VISTA CANYON RECYCLED WATER FACTORY CONTRACTS
AND AGREEMENTS
DEPARTMENT: Neighborhood Services
PRESENTER: Jerrid McKenna
RECOMMENDED ACTION
City Council:
1. Approve an agreement in form between the City of Santa Clarita and the Santa Clarita
Water Agency and authorize the City Manager to make non -material changes and execute
the final agreement, subject to City Attorney approval.
2. Appropriate an ongoing expenditure for $762,416 from the Vista Canyon Wastewater
Standby fund balance (Fund 368) per attached Exhibit A, effective Fiscal Year 2023-24.
Appropriate a one-time funding expenditure for $60,089 from the Vista Canyon
Wastewater Standby fund balance (Fund 368) per attached Exhibit B, effective June
2023.
4. Award a five-year contract to PERC Water Corporation to provide operations and
maintenance at the Vista Canyon Recycled Water Factory in the amount of $3,162,845;
and authorize a contingency of $316,285, for a total contract amount not to exceed
$3,479,130.
5. Authorize the City Manager or designee to execute up to two additional one-year renewal
options, plus an adjustment consistent with the appropriate Consumer Price Index (CPI
for Los Angles, Riverside, Orange County, June) adjustments, upon request of the
contractor, and contingent upon the appropriation of funds by the City Council in the
annual budget for such fiscal year.
6. Authorize the City Manager or designee to execute all contracts and associated
documents, subject to City Attorney approval.
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BACKGROUND
On April 16, 2011, the City Council approved Resolution No. 11-23, which formally approved
the Vista Canyon project, including the final Conditions of Approval (COA). The approved
project included up to 1,100 dwelling units (apartments, townhomes, and detached single-
family), 950,00 square feet of commercial space, a 10-acre park, and up to four parking
structures, among other amenities. In addition, Vista Canyon Ranch, LLC (Developer) was
conditioned to construct a self-contained wastewater treatment plant (Water Factory) that would
treat wastewater generated by the project and produce tertiary recycled water.
The Water Factory would have a design capacity of 392,135 gallons per day (equivalent to 439.2
acre-feet per year) and is expected to produce approximately 371,000 gallons per day (equivalent
to 415.5 acre-feet per year) of recycled water. The Water Factory would be owned and operated
by the City of Santa Clarita (City) and the recycled water produced sold to the Santa Clarita
Valley Water Agency (SCVWA). To fund the annual operations and long-term capital
replacement costs, the City Council approved the creation of two special assessment districts, a
"standby" and a "sewer rate," in November 2017. The standby assessment will be imposed on
vacant parcels until such time as the parcels become developed and a certificate of occupancy
has been issued; whereupon, the sewer rate will be collected in place of the standby assessment
for subsequent years.
Under the COA, the Developer is financially responsible for the construction of the Water
Factory and its operation until the City assumes ownership and operation, which was initially
estimated to be one year. The Water Factory was completed and became operational in mid-
2020. While the facility has been completed for approximately three years, it has not yet been
turned over to the City as the needed water tank to capture recycled water had not been
constructed by the SCVWA. However, the water tank is now in place, and City staff has been
actively working with the SCVWA to complete an agreement for the sale of recycled water. The
agreement is substantially complete and expected to be approved by the SCVWA Board in June
2023; therefore, staff is recommending the City Council approve the agreement in form.
Over the last three years, the Developer has used PERC Water Corporation to operate and
maintain the Water Factory. PERC Water Corporation (PERC) is an innovative water
infrastructure company that develops, designs, builds, operates, and manages water infrastructure
nationwide. Staff is recommending awarding a contract to PERC for the ongoing operation and
maintenance of the Water Factory based on PERC's current operational status at the Water
Factory; their previous experience involving routine and emergency -related work; their record of
quality service; and the fact that City staff currently lack the necessary knowledge and
certifications required for the operation of the facility. Moreover, while the City did not undergo
a formal competitive process for the operation of the facility, the City received approval from the
Water Replenishment District of Southern California (WRD) to "piggyback" off of their 2022
Request for Proposal (RFP) process for the operation and maintenance of water treatment
facilities, which resulted in a ten-year contract award to PERC. Furthermore, PERC consented to
the "piggyback" approach and proposed to the City a pricing model equivalent to their
arrangement with WRD.
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As a result, staff recommends awarding a contract to PERC to provide operations and
maintenance for the Water Factory for an annual contract amount of $695,826 inclusive of
contingency, for a total five-year contract amount not to exceed $3,479,130, and to authorize two
optional one-year renewals.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The recommended actions will address budget appropriations beginning in Fiscal Year 2023-24
for $762,416 as noted in Exhibit A from the Vista Canyon Wastewater Standby fund balance
(Fund 368) and a one-time funding expenditure for $60,089 from the Vista Canyon Wastewater
Standby fund balance (Fund 368) per attached Exhibit B, effective June 2023.
ATTACHMENTS
Exhibit A - Vista Canyon Operations and Maintenance
Exhibit B - Operations and Maintenance June 2023
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15.a
Exhibit A
Vista Canyon Recycled Water Factory
Operations and Maintenance
Contactor Operator Expenditures
Contractual Services Estimate Yearly Budget
3687413-516101 $52,714/Monthly $632,568
City Expenditures
3687413- • Electric
513101 Utilities
3687413- • Gas
513102 Utilities
3687413- • Annual
516101 Recycled
Water
Fees
3687413- • Annual
516101 Waste
Discharge
Fee
Estimate
$7,200/Monthly
$175.00/Monthly
$16,700/Annual
Total Expenditures: $762,416
$24,648/Annual
Budget
Yearly
zpoV,quu
$2,100
$16,700
$24, 648
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15.b
Exhibit B
Vista Canyon Recycled Water Factory
Operations and Maintenance June 2023
Contactor Operator Expenditures
Contractual Services Estimate
3687413-516101 $52,714/Monthly
City Expenditures
3687413- • Electric
513101 Utilities
3687413- • Gas
513102 Utilities
Total Expenditures: $60,082
$7,200/Monthly
$175.00/Monthly
$7,200
$175.00
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