Approve award of construction contract to Soracco, Inc. for North Davis Meadows County Service Area (NDM CSA) water consolidation project in the amount of $3,661,005; authorize the Director of Community Services to sign the contract and approve change orders consistent with the applicable limits of the Public Contract Code; and authorize a construction contingency budget of 10% of the total construction contract price. (No general fund impact) (Lindbo/Pavlova)

The North Davis Meadows County Service Area (NDM CSA) provides, among other services, water service for both potable and non-potable uses to the community's 95 residential parcels.  Since 2009, the NDM CSA has been working toward a permanent solution for mitigation of water quality concerns in the community's public water system, most notably nitrate, hexavalent chromium, aluminum and iron in excess of maximum contaminant levels (MCLs).  For the past few years, the NDM CSA has been exploring options for providing a cleaner water supply in order to reach regulatory compliance with California drinking water standards.  After assessing a variety of options, the NDM CSA Advisory Committee and the community concluded that consolidating with the City of Davis public water system was the most reliable and cost-effective method to comply with California drinking water regulations and to ensure the health and safety, including fire protection, for the residents of North Davis Meadows ("the Water Consolidation Project" or "the Project"). 

On March 18, 2018, the Yolo County Board of Supervisors adopted a resolution, after a successful Proposition 218 proceeding, that increased fees commensurate with the cost of a construction loan and approved the Project. On December 18, 2018 the City of Davis Council approved a resolution executing an agreement with Yolo County to provide potable water to the North Davis Meadows community (Agreement No. 18-261), which will connect the NDM CSA to the City of Davis.  Prior to the Project initiating construction, legal challenges were made regarding the Proposition 218 process which halted progress.  The litigation was resolved in 2021 in the County's favor, allowing the Project to move forward. 

Subsequent to the litigation, County staff reinstated the Project and have been working directly with the State Water Resources Control Board (SWRCB) to finalize financing for the Project through the Drinking Water State Revolving Fund (SRF) program.  The SWRCB provides financial assistance to municipalities for water and wastewater projects, including loan and grant funding for the construction of municipal drinking water facilities. The County received commitments from the SWRCB for both a grant in the amount of $7.6 Million for the Project to cover the majority of the costs of the Project, with the remainder funded by an SRF loan at a low interest rate.

On December 6, 2022, the Board of Supervisors approved the Project plans and specifications and authorized advertise for construction management services and construction bids. The Board of Supervisors approved the Project financing through the SRF program and authorized Staff to execute necessary implementing documents on June 6, 2023 (Resolution No. 23-97).  The SRF Loan received final approval from the SWRCB in January 2024 with the execution of an Installment Sale Agreement and funding agreement awarding a grant in the amount of $7.6 million for the Project and a low-interest SRF Loan allowing repayment of the SRF loan over 30 years, payable by the County solely from the water fees and charges adopted by the North Davis Meadows CSA on March 20, 2018, to cover the anticipated annual repayment of the SRF Loan.  On April 9, 2024, the Board of Supervisors approved an amendment to the 2018 Consolidation Agreement to make the SWRCB a third-party beneficiary and incorporate the Installment Sale Agreement into the Consolidation Agreement.  In addition, the City and County further agreed to remove the additional requirement for individual property owner agreements to simplify the consolidation process and commencement of City water service.

In February 2024, the County issued a request for construction bids which were due on April 18, 2024.  The County received a total of five (5) bids, ranging from $3,661,005.00 (lowest) to $7,119,425.00 (highest).  Soracco, Inc. provided the lowest responsive and responsible bid, coming in at $3,661,005.00.  On May 6, 2024, the County issued an Intent to Award to Soracco, Inc. The County then proceeded to submit and discuss the bid tabulation documents with the SWRCB.  The SWRCB is in the process of reviewing Soracco Inc.'s bid and signaled preliminary approval on moving forward with the Soracco, Inc. bid on July 12, 2024.  County staff anticipates receiving final approval from SWRCB in the near future, and in the meantime recommends the Board of Supervisors approve the contract award to Soracco, Inc. so that construction of the Project may commence as soon as the final approval by the SWRCB is secured. 

North Davis Meadows CSA Advisory Committee, State Water Resources Control Board, County Counsel, City of Davis, Ponticello Consulting Engineers, West Yost Consulting Engineers

Request for Construction Bids: County of Yolo North Davis Meadows County Service Area Water Consolidation Project, due April 18, 2024.