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ADOPT A RESOLUTION AUTHORIZING A CONTRACT EXTENSION FOR PROFESSIONAL STAFFING SERVICES FROM WATERTALENT, LLC. AND AMEND THE FISCAL YEAR 2023-24 ANNUAL BUDGET
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code Section 3.68.070 in support of an exception to the competitive bidding process.
2. Authorize the City Manager to execute a five (5) year contract extension with waterTALENT, LLC. for a not-to-exceed amount of $1,599,500.
3. Appropriate funds of $200,000 from the Wastewater Utility Fund Balance and $50,000 from the Water Utility Fund Balance to the respective Wastewater and Water Treatment Plant Operations, Special Services account for these services for the 2023-24 fiscal year.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.
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Summary
In 2019, the Municipal Utilities Department (MUD) contracted with waterTALENT, LLC. (waterTALENT) for professional staffing services for water and wastewater operators. This firm possesses the expertise to recruit and deploy licensed operations staff within twenty-four (24) hours in the event of sudden or temporary staff shortages. In 2020, the COVID-19 pandemic triggered job loss nationwide and the effects are still present. While the MUD weathered the pandemic, hiring state-certified operators has been difficult with fewer available applicants and greater competition for these qualified operators. Operator staff shortages continue to impact MUD operations, including the recent retirement of the Grade 5 Chief Plant Operator at the Regional Wastewater Control Facility. Without these services, the MUD will have difficulty maintaining adequate staffing levels to meet State and Federal operation requirements.
If approved, Amendment No. 5 will extend the waterTALENT contract for 5 (five) years through June 30, 2029 and add $1,500,000 to the contract amount to fund the added 5-year term, increasing the total contract amount to $1,599,500. Staff is also requesting an appropriation of $250,000 for FY 2023-24 to adequately fund temporary staffing of a Grade 5 operator while permanent staffing is recruited.
DISCUSSION
Background
The MUD operates the Regional Wastewater Control Facility (RWCF), which is a Class 5 publicly owned treatment works. The facility is regulated through the National Pollutant Discharge Elimination System (NPDES) permit through the Environmental Protection Agency. A Class 5 facility is required to have a Grade 5 certified operator in responsible charge.
The MUD also operates the Delta Water Treatment Plant (DWTP), under a permit regulated by the State Water Resources Control Board, for a T5 drinking water treatment facility and requires a T5 certified operator in responsible charge. For the City’s Water Distribution System, it requires a D5 certified operator to be in responsible charge. All other staff who operate the RWCF, the DWTP, and the water distribution system are required to be properly certified.
In 2019, the MUD contracted with waterTALENT of Sherman Oaks, CA, for professional staffing services for water and wastewater operators for $74,500. This firm has the expertise to recruit and deploy temporary licensed operations staff within twenty-four (24) hours. The contract was issued as a stop-gap measure in the event staff vacancies of certified operators could not be filled timely, leaving the RWCF or DWTP unable to adequately staff work shifts. COVID impacted the MUDs ability to maintain adequate staffing levels at both the RWCF and DWTP. In 2020, Amendment No. 1 was executed extending the contract for one year with no additional funds added. In 2021, Amendment No. 2 extended the contract term through June 30, 2024. It was not until 2023 when significant staffing shortages required the use of these services for both the wastewater and water divisions. In May 2023, Amendment No. 3 was executed to include additional staffing levels to the contract to meet the needs of the DWTP. In the same month, Amendment No. 4 was executed to add funds to the contract, revising the contract total to $99,500. Amendments 1 through 4 extended the contract term to 5 years and increased the total amount to $99,500, all of which was within the City Manager’s authority for approval. Requested Amendment No. 5 exceeds the City Manager’s authority, requiring City Council approval.
Present Situation
The MUD has had several operator vacancies for an extended period of time, although recruitments have been advertised for entry-level and senior plant operators for the RWCF and DWTP. On-boarding entry-level plant operators can take up to one year to obtain the necessary operations training and advanced certifications. The low recruitment responses and time to on-board have made it necessary to retain the ability to access certified contract operators for water treatment, distribution, and wastewater treatment to backfill staff shortages. This is needed to ensure appropriate staffing for uninterrupted treatment and distribution of drinking water to City residents and continuous collection and treatment of wastewater while maintaining compliance with various permit requirements.
The requested Amendment No. 5 will extend the current contract with waterTALENT for another 5 years. It will also add an additional $1,500,000 funding for the 5-year period to bring the total contract amount to $1,599,500.
While operator vacancies continue at the RWCF and DWTP, the RWCF has an urgent need for a certified Grade 5 Operator while the vacant Chief Plant Operator position is filled. The estimated weekly cost for a Grade 5 Operator is $9,000. Funds were not budgeted in FY 2023-24 to support this level of staffing and cost. An appropriation of $250,000 is requested to adequately fund the contract to support staff needs through the end of FY 2023-24.
Findings
Stockton Municipal Code Section 3.68.070(A)(5) provides an exception to the competitive bidding requirements when the City Council approves findings that support an exception to the competitive bidding process. Proposed findings to support this purchase are:
1. The MUD is required to have certified operators for operating the equipment used to treat and discharge wastewater and to treat and distribute potable drinking water.
2. Lack of operators on staff has the potential to violate the NPDES or Water Supply permits.
3. Additional services, such as process control experts, may be needed in the future as the RWCF Plant Modification is completed and operations are turned over to the MUD.
4. The waterTALENT firm has provided operational staffing services to the City, is familiar with the City’s specific certification requirements at the RWCF and DWTP, and has guaranteed a 24-hour response time with qualified staff.
5. It is in the City’s best interest to maintain temporary operator staffing services to ensure continued permit compliance and adequate staffing levels.
FINANCIAL SUMMARY
This work was funded in Fiscal Year (FY) 2023-24 for $20,000, which did not account for the cost of staffing a Grade 5 Operator. A budget appropriation in Fiscal Year 2023-24 is requested for $200,000 from the Wastewater Utility Fund Balance account to the Wastewater Treatment Plant Operations, Special Services account and $50,000 from the Water Utility Fund Balance account to the Water Treatment Plant Operations, Special Services account.
With this new appropriation, the FY 2023-24 Annual Budget will include sufficient funds for the additional cost for a Grade 5 Chief Plant Operator at the RWCF. Costs for the subsequent years will be budgeted in the same account and subject to Council approval during the annual budget development process.
There is no impact to the General Fund, or any other unrestricted funds, from this action.