That the City Council and La Habra Utility Authority:
A.  Approve and authorize the City Manager/Executive Director to execute an agreement with Willdan for a sewer improvement feasibility study and design services for the former County Island sewer project; and

B.  Authorize staff to issue a purchase order in the amount of $84,360 to Willdan, which includes a twenty percent (20%) contingency.

In 2017, the City annexed six unincorporated county service islands in the northern part of La Habra. The properties within these former county service islands are predominantly equipped with private septic systems. Private septic systems are intended to collect and treat wastewater on-site by capturing the wastewater in an underground tank. The tank allows for the separation of the wastewater through a settling process with solids forming sludge at the bottom of the tank. The treated wastewater exits the tank and enters a leach/drain field where it is dispersed for final treatment by the soil through percolation. Private septic systems require regular routine maintenance to remove the buildup of sludge, scum, fats, oils, and greases. If the solids enter the drain/leach field, the lifespan of the septic system can be greatly impacted. Typically, an average properly maintained septic system should last for 20 to 30 years depending upon soil conditions, maintenance, and the products being discharged into the system.

Property owners in the former county islands that have homes with septic systems have the ability to petition the City to determine the feasibility of designing and constructing sewer main lines that would extend the City’s existing sewer collection system, and allow them to construct their own lateral lines to connect to the City sewer system. To date, two property owners in the former county islands (Citrus Drive island and Walker/Magda Lanes island), have submitted petitions for such sewer improvements within each respective area.

As part of the Former County Island Sewer Design Project, new sewer main lines, along with lateral connections within the public right-of-way to each parcel, will be designed along Citrus Drive, Walker Lane, Magda Lane and Cypress Street. The construction of the new sewer main lines will provide property owners on those streets who currently have a septic system the ability and choice, where feasible, to connect to the new City sewer main line. A resident who wishes to connect to the City sewer system would be required to sever the connection to their septic system and install a private sewer lateral at their own cost. Additionally, any new customers will be required to pay a monthly sewer service fee of approximately $11.84 (based upon current rate structure) to the La Habra Utility Authority (Authority) and approximately $343 per year in additional property tax assessments to the Orange County Sanitation District (OCSD), since the Authority collects and conveys the wastewater to OCSD’s regional trunk system and OCSD performs any necessary treatment.
 
To help accomplish this goal, Willdan has submitted a comprehensive proposal that includes a detailed work plan and schedule.  Willdan has extensive work experience designing similar projects, and they have submitted a reasonable fee and an accelerated schedule to complete the design. Furthermore, Willdan is familiar with the neighboring area(s) as a result of their ongoing design of the Bishop/Cypress Channel Storm Drain Project. The City's Municipal Code Section 4.20.080 "Exceptions to Bidding Requirements" for the purchase of certain professional services allows the procurement of services for which professional policies prohibit competitive bidding, such as, but not limited to, architectural services, consultant services, legal services and engineering services, allowing staff to negotiate for the provision of such services.

Staff recommends that the City Council/Authority approve and authorize the City Manager/Executive Director to execute an agreement (Attachment 1) with Willdan for design services and authorize staff to issue a purchase order in the amount of $84,360, which includes a twenty percent (20%) contingency.

Funding for the project is included as part of the approved Fiscal Year 2021-2022 CIP Budget, which includes an allocation of $250,000 of Sewer Enterprise Funds for the Former County Island Sewer Design Project.  There are sufficient funds for this agreement and no additional funds are requested at this time.

Additionally, the proposed project conforms with the City's General Plan 2035 and relevant to the following goals and policies:

H 2.3 Supportive Public Facilities
SS 1.1 Sewer Master Plan
SS 1.1 Sewer System Rehabilitation Plan

The proposed project is consistent with the City's FY 2022-23 Goals and Objectives:
Goal 3 - Maintenance and Improvement of City Infrastructure