Approve plans and specifications for the construction of the North Davis Meadows water consolidation project and authorize the Director of Community Services to advertise for construction management services and construction bids for the project; authorize the Director of Community Services to execute a construction management services agreement up to $550,000. (No general fund impact) (Echiburu/Villa)

Background
Since 2009, the North Davis Meadows 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).  Absent progress toward a viable solution, the community is at risk for receiving a $1,000 fine per day, per constituent, for each constituent documented over the MCL.  The North Davis Meadows community is serviced by three wells, therefore the potential fine could be $3,000 per day.  

After assessing a variety of options for providing a potable water supply that meets all drinking water standards, including treatment at the well-head and drilling deep wells, the North Davis Meadows County Service Area Advisory Committee and the community concluded consolidation with the City of Davis public water system the most reliable and cost-effective method to comply with California drinking water regulation and to ensure the health and safety, including fire protection, for the residents of North Davis Meadows (known as the North Davis Meadows Water Consolidation Project). A map depicting the location of the project is included as Attachment A.

On March 18, 2018, the Yolo County Board of Supervisors adopted a resolution, after a successful Proposition 218 proceeding, that increased fees that covered 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.   Prior to the project initiating construction, legal challenges were made regarding the Proposition 218 process which halted progress on the connection.  The litigation was resolved in 2021 in the County's favor, allowing the project to move forward. 

Project Update
County Staff reinstated the project and has been working directly with the State Water Resources Control Board (SWRCB) to finalize financing for the project.  The current estimated cost to complete the project is $8,135,600.  A financial agreement is currently being negotiated with the SWRCB and anticipated to return to the Board for approval in early 2023.  The final financial agreement with the SWRCB is expected to include $7.6 million in grant funding with the remainder of the project cost being financed with a low interest loan through the SWRCB's Drinking Water State Revolving Fund (SRF) program.  The SRF loan is estimated to be $750,000, pending final determination of construction costs.  Staff have also coordinated with the City of Davis to reduce the per household connection charge resulting in a project savings of $1.65 million.  Yolo County and City of Davis' Public Works departments, respectively, have reviewed the plans and specifications and support the approval of the plans as presented. 

Next Steps
While the SWRCB financing agreement is finalized, Staff recommends that the Board approve the project plans and specifications (Attachment C) and authorize the next steps in the construction process -- (1) issuing a Request for Qualifications (RFQ) for construction management services for the project and authorizing the Director of Community Services to execute an agreement up to $550,000 for such construction management services; and (2) advertising for construction of the project.  The project is scheduled to go out for bid in early 2023 and a draft of the Notice to Bidders that will be issued to commence the bid advertising process is included as Attachment B. The award of the construction contract will return to the Board for approval once the SWRCB financing agreement is finalized and the competitive bidding process has concluded. 

County Counsel, North Davis Meadows CSA, City of Davis, State of California-Department of Water Resources 

Project will be advertised on Bidsync.com for competitive bidding. The competitive bid process will be completed in accordance with State law. Bids will be opened and read publicly at the Department of Community Services.  A contract may only be awarded to the lowest responsive and responsible bidder.