For Water Subcommittee Meeting September 11, 2024
TO: Honorable Water Subcommittee Members
APPROVAL: Tanya Williams, Assistant City Manager
FROM: Toyasha Sebbag, Assistant to the City Manager
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Staff requests that the Water Subcommittee provide feedback on authorizing Rialto Water Services, as operated by Veolia West Operating Services, Inc. to begin Contract Negotiations with a Vendor to Implement the Advanced Metering Infrastructure Project. (ACTION)
RECOMMENDATION
Staff recommends that the Water Subcommittee provide feedback on authorizing Rialto Water Services, as operated by Veolia West Operating Services, Inc. to begin Contract Negotiations with a Vendor to Implement the Advanced Metering Infrastructure Project.
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BACKGROUND
On March 27, 2012, the City Council and Rialto Utility Authority (RUA) took several actions related to the approval of a Concession Agreement (CA) with Rialto Water Services, LP, (RWS), as operated by Veolia West Operating Services, Inc. (Veolia). This public-private partnership assigned the operation and maintenance of the City’s water and sewer/wastewater utilities to RWS. Pursuant to Article XII “Water Facility Improvements and Capital Projects” of the CA, certain capital projects were identified by the CA for implementation by RWS. Implementation of the utility capital projects identified in the CA is carried out pursuant to the process outlined in Article XII of the CA.
ANALYSIS/DISCUSSION
The City of Rialto (City) and Rialto Utility Authority (RUA) have secured $8 million in grant funds to implement the Advanced Metering Infrastructure (AMI) Project: $6 million from the Department of Water Resources Urban Community Drought Relief Grant and $2 million was secured from the U.S. Department of Interior, Bureau of Reclamation.
In December 2023, Veolia requested sealed bids for the supply and installation of an Advanced Metering Infrastructure System for Rialto Water Services (RWS). Several vendors requested an extension, and an addendum was added with the due date of February 2, 2024, as well as adding a grant signage requirement to the Request for Proposal (RFP). Following the bid opening, Veolia informed staff that three (3) bids had been received, and Veolia determined that only one bid was complete. Therefore, Veolia re-bid the project.
On March 15, 2024, Veolia released a second RFP by soliciting bids from qualified vendors that had a history of performing similar work for Advanced Metering Infrastructure with a bid due date of April 12, 2024.
On April 5, 2024, Veolia released Addendum No. 1, which included answers to bidder's questions and an Excel spreadsheet with service location addresses.
On April 12, 2024, the bid closed.
On April 19, 2024, Veolia released Addendum No. 2 extending the RFP due date to May 6, 2024, and waiving the bidder's union requirement.
On May 6, 2024, four (4) bids were received with the following vendor ranking and cost proposal:
Contract and Final Construction Work Authorization (FCWA) Negotiations
After reviewing all bids and conducting interviews staff and RWS-Veolia met and concluded that the lowest responsive bidder was Aqua-Metrics. Therefore, staff and RWS-Veolia recommend that Veolia enter final negotiations with Aqua-Metrics in order to finalize the amounts necessary for a FCWA.
Staff and RWS-Veolia are also currently negotiating Veolia’s project fees. Historically, Veolia’s project fees have been categorized as follows with the following percent of the project cost.
Veolia’s Historical FCWA fees
Staff and RWS-Veolia, in consultation with the independent engineer, Arup, will review the applicability of the items and percentages above in preparing the final FCWA.
ENVIRONMENTAL IMPACT
Section 21084 of the California Public Resources Code requires Guidelines for the Implementation of the California Environmental Quality Act (CEQA). The Guidelines are required to include a list of classes of projects which have been determined not to have a significant effect on the environment and which are exempt from the provisions of CEQA. In response to that mandate, the Secretary for Resources identified classes of projects that do not have a significant effect on the environment and are declared categorically exempt from the requirement for the preparation of environmental documents. In accordance with Section 15301 “Existing Facilities”, of the CEQA Guidelines, a Class 1 project consists of the operation, repair, maintenance, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The replacement of existing water meters is considered a Class 1 project and is categorically exempt from CEQA.
GENERAL PLAN CONSISTENCY
Approval of the proposed action also complies with the following City of Rialto Guiding Principles, General Plan Goals and Policies:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the City of Rialto General Plan Goal and Policy:
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
Policy 3-8.4: Advocate regular evaluation of the entire water supply and distribution system to ensure its continued adequacy, reliability, and safety.
LEGAL REVIEW
The City Attorney’s Office has reviewed the staff report.
FINANCIAL IMPACT
Operating Budget Impact
By implementing an AMI meter system, it is anticipated that there will be a reduction in Veolia’s field service staff due to significantly reduced field visits. The exact reduction will be calculated during the 2024-2027 Labor Reset of the Concession Agreement for Water and Wastewater with Rialto Water Services.
Capital Improvement Budget Impact
Depending on feedback from the Water Subcommittee, the Project may be fully funded through $8 million in grant funds to implement the Advanced Metering Infrastructure (AMI): Department of Water Resources Urban Community Drought Relief Grant Funds for $6,000,000 and the U.S. Department of Interior, Bureau of Reclamation Grant Funds for $2,000,000.
These grants will go before the City Council for acceptance of the grant monies at the same time that the contract is awarded to a vendor for the AMI project.