Award of Water System Operations and Maintenance Agreement to Water Workforce and Authorization for the City Manager to Negotiate and Execute Agreement.
 

Staff recommends that the City Council approve the selection of Water Workforce for operation and Maintenance of the City's municipal water system and authorize the City Manager to negotiate and execute an agreement, subject to City Attorney approval. 

The City of Hawthorne owns and operates a portion of its municipal water system, which includes a treatment plant, four wells, four reservoirs, a high water tank, and associated water rights. The City’s current 30-year lease agreement with California Water Service (Cal Water) is set to expire in August 2026, prompting the City to evaluate future operational and management options for the system. In response, the City released a Request for Proposals (RFP). While early interest included potential purchase of the system, those options were determined to be infeasible due to Proposition 218 constraints. As a result, the City refined its approach and reissued an RFQ focused solely on qualification for operations and maintenance services.

Through a competitive evaluation and interview process, the City received two proposals and identified Water Workforce (WWF) as the most qualified proposer. WWF demonstrated strong experience in water system operations, regulatory compliance, certified staffing, asset management, and full-service support including billing, maintenance, and system operations. Staff have since worked with the City Attorney’s Office to negotiate a proposed agreement. The agreement outlines that WWF will operate and maintain the City’s water system, while the City retains ownership of all infrastructure and responsibility for capital improvements. The agreement includes financial transparency measures, reporting requirements, and revenue-sharing provisions based on system performance.

Staff believes that, given the complexities associated with reestablishing City-led operations, including the need to hire specialized staff, significant upfront capital and operational costs, and the likelihood of pursuing rate increases under Proposition 218, that it is not in the City’s best interest to resume direct operation of the water system at this time. Accordingly, staff recommends awarding the operations agreement to Water Workforce and authorizing the City Manager to finalize, negotiate and renegotiate the agreement terms, including an initial evaluation period to ensure performance and financial viability prior to any long-term commitment.
 

Ensuring reliable and efficient operation of the City’s water system supports economic development by maintaining essential infrastructure needed for residential, commercial, and industrial growth

None.

72 hours posted notice pursuant to the Ralph M. Brown Act.