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Report regarding a resolution approving a professional services agreement with Minerva Construction, Inc. for operation and maintenance of the Orange Memorial Park Flood Prevention Project (Orange Memorial Park Stormwater Capture Project) for an initial three-year term, with a total authorized budget of $599,058 and options for two additional one-year extensions and authorizing the City Manager or designee to execute the agreement. (Matthew Ruble, Principal Engineer)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution approving a professional services agreement with Minerva Construction, Inc. (“Minerva”) for operation and maintenance of the Orange Memorial Park Flood Prevention Project (Orange Memorial Park Stormwater Capture Project) (“Project”) for an initial three-year term in an amount not to exceed $599,058; authorizing a 10 percent contingency of $59,906, for a total authorized budget of $658,964 for the initial three-year term; authorizing the City Manager or designee to exercise up to two additional one-year extensions, subject to satisfactory performance, continued operational need, and available budget, in an amount not to exceed $205,000 per extension year, plus a 10 percent contingency of $20,500 per extension year, for a total authorized amount of $225,500 per extension year; and authorizing the City Manager or designee to execute the agreement, the extensions, and any related documents, subject to approval as to form by the City Attorney.
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BACKGROUND/DISCUSSION
The Orange Memorial Park Stormwater Capture Project is an underground regional stormwater capture, treatment, and reuse system located within Orange Memorial Park. The facility captures and treats stormwater and dry weather flows from the surrounding watershed before they reach Colma Creek and ultimately San Francisco Bay. The Project supports the City’s efforts to reduce trash and other pollutants entering the storm drain system, helps meet applicable stormwater and trash-reduction requirements, and supplies treated water used by the Parks and Recreation Department for irrigation and cleaning. The Project each year diverts and cleans approximately 250 million gallons of water, supplies approximately 12 million gallons for park irrigation, and recharges approximately 70 million gallons to the Westside Basin aquifer.
In addition to its water quality and water reuse functions, the Project provides flood mitigation as a co-benefit. The system includes 1.8 million gallons of underground storage. Active controls allow that storage to be emptied in advance of forecasted major storms. Opening the sluice gate when flows in the Colma Creek channel reach the top of bank can then divert water into storage, reduce peak flow in the channel, and help protect surrounding neighborhoods from flooding.
The system requires ongoing maintenance to remove sediment, trash, debris, and algal growth that can clog screens, impede flow, and interfere with the system’s performance. Minerva’s proposed scope includes monthly cleaning of the diversion channel and trash rack for 11 months each year, with a comprehensive cleaning of the entire system once annually after the rainy season (replacing the twelfth cleaning), and providing monitoring, sampling, laboratory testing, chemical treatment, and system-repair support. The proposal anticipates removing and disposing of approximately 20 tons of nonhazardous sediment and soil each year, or approximately 60 tons during the initial three-year term. The initial term would run from October 1, 2026, through September 30, 2029.
Minerva constructed and commissioned the Project and installed and integrated its specialized underground components and proprietary treatment technology. Minerva has also maintained the system for four years following completion through the commissioning period, which ended on August 31, 2026. Through this work, Minerva has developed detailed knowledge of the system’s as-built configuration, controls, treatment processes, access requirements, maintenance history, and connections to other City infrastructure. This experience has given Minerva a unique understanding of the system and its operational needs.
The principal system components are underground and cannot be readily understood through visual inspection. The Project uses an HTEC water treatment system, Model HTEC200-SW-DT, incorporating specialized filtration, ultraviolet treatment, monitoring, and controls integrated with the existing pumping system. Through four years of maintenance, Minerva has developed an in-depth understanding of the system and its operational needs. This knowledge has enabled Minerva to diagnose and correct multiple operational challenges that would otherwise have caused prolonged outages and disrupted the water supply the Parks and Recreation Department uses for irrigation and cleaning. Transitioning to another contractor would require that contractor to develop a comparable understanding of the underground components, treatment processes, controls, and integrated operations before independently performing maintenance and troubleshooting.
Meeting the Project’s performance objectives depends on Minerva continuing to apply its knowledge of system operations to maintenance, and another consultant or vendor cannot provide these services. Maintaining uninterrupted service is particularly important as the City prepares for the upcoming rainy season and potential major storms. Seasonal readiness further supports the need for continuity of maintenance. Minerva’s specialized knowledge remains the basis for staff’s determination that it is the sole qualified source for these services pursuant to Administrative Instruction Section IV, Section 4.11, subsection 4, “Sole Source Procurements”.
COST NEGOTIATION
The City paid Minerva $306,502 for maintenance of the Project during the most recent year, September 1, 2025, through August 31, 2026, under Contract Change Order No. 14. The proposed agreement averages $199,686 per year, a reduction of $106,816 per year, or approximately 35 percent. Staff negotiated the reduction with Minerva by adjusting the scope based on operating experience. Because the agreement is a sole-source award, staff relied on this cost history, rather than competing proposals, to determine that the proposed price is reasonable.
FISCAL IMPACT
The proposed agreement would authorize an amount not to exceed $599,058 for the initial three-year term, plus a 10 percent contingency of $59,906, for a total authorized budget of $658,964. The negotiated cost averages $199,686 per year, approximately 35 percent below the prior-year maintenance cost of $306,502. Funding for the agreement, including a contingency, is provided through appropriations included in the Fiscal Year 2026-27 Adopted Budget. Any optional extension would be subject to available funding and approval of the applicable extension amount.
The proposed agreement would support continued operations and maintenance of the Orange Memorial Park (OMP) Regional Stormwater Capture Project, which has been in service for five years. The City received $15.5 million in Caltrans grants for project installation, in-kind replacement of the ballfield, and the initial three-year commissioning period. Operations and maintenance during the subsequent two years have been supported through an agreement with OneShoreline providing reimbursement of direct maintenance costs in an amount not to exceed $500,000. The City anticipates further discussions with OneShoreline regarding continued funding for operations and maintenance. The Project serves several jurisdictions in the Colma Creek watershed, and its benefits are consistent with the purposes in OneShoreline’s enabling legislation: it controls stormwater and floodwater, stores water underground, recharges the Westside Basin aquifer, and supplies captured water for irrigation. In the interim, City appropriations will support the proposed agreement.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
Approval of the agreement supports the Infrastructure and the Environment major focus area, as the services from Minerva enhance environmental sustainability, resilient infrastructure, flood mitigation, regulatory compliance, and the protection of local waterways and San Francisco Bay.
ASSOCIATED DOCUMENTS
1) Minerva Cost Proposal