BOARD AGENDA MEMORANDUM
Government Code Section 84308 Applies: Yes ☒ No ☐
(If “YES” Refer to Attachment A)
SUBJECT:
Title
Approve Agreement No. A5861A with Sacred Heart Community Service for Professional Consulting and Administrative Services for the Water Rate Assistance Program, PlanetBids File No. VW0704, for $660,000 Over Two Years, with Two One-Year Extension Options, for a Total Not-To-Exceed Amount of $1,339,932 Over Four Years.
End
RECOMMENDATION:
Recommendation
Approve Agreement No. A5861A with Sacred Heart Community Service for Professional Consulting and Administrative Services for the Water Rate Assistance Program, PlanetBids File No. VW0704, for $660,000 over two years, with two one-year extension options, for total not to-exceed amount of $1,339,932 over four years.
Body
SUMMARY:
The Water Rate Assistance Program (WRAP) was established in 2021 to provide financial assistance to eligible low-income households in Santa Clara County to help pay their water bills. Recognizing the continued financial challenges resulting from inflation, rising water rates, and increasing household living costs, the Santa Clara Valley Water District (Valley Water) Board of Directors approved continued funding for WRAP through Fiscal Year 2027-28 to help ensure eligible residents can maintain essential water service.
This Agreement will support the continued implementation of WRAP by administering the program and disbursing approximately $2.25 million in Valley Water pass-through funds directly to participating water service providers on behalf of eligible customers. Sacred Heart Community Service (Consultant) will provide comprehensive program administration, including multilingual outreach and application assistance, eligibility screening, payment processing, recordkeeping, reporting, and program oversight. The Consultant will also help ensure equitable access to the program by serving communities facing language, technology, and other access barriers.
Under this Agreement, the Consultant shall segregate and keep separate Valley Water funds to be provided to water service providers on behalf of eligible WRAP participants from funds used to pay for its services. Recipient pass-through funds shall be held in trust by Consultant. In a separate account, Consultant will hold and account for all monies owed and paid for its services under this Agreement.
Continued implementation of WRAP will help eligible households maintain uninterrupted water service, reduce the financial burden of water costs, and avoid water service disconnections.
Consultant Selection Process
Prior to publishing the Request for Proposals (RFP), staff conducted outreach to 458 firms registered under the relevant National Institute of Governmental Purchasing (NIGP) Category Codes within Valley Water’s Procurement Portal, PlanetBids (PB). The targeted category codes for this solicitation included: 624000 - Social Assistance, and 91800 - Consulting Services. Staff also issued advertisements in the San Jose Post and SBEINC.com prior to publishing the RFP.
On May 14, 2026, staff published a RFP for the Water Rate Assistance Program. No pre-proposal meeting was held for this RFP.
On June 16, 2026, Valley Water received a proposal from one consultant firm, Sacred Heart Community Service.
An Evaluation Committee (EC), consisting of four Valley Water staff members with relevant subject-matter expertise, evaluated and ranked the written proposal. Based on the technical proposal rating score, EC determined that Sacred Heart Community Service has demonstrated strong qualifications, technical approach, and understanding of the scope of services. EC recommends proceeding into contract negotiations with Sacred Heart Community Service.
Consultant Agreements and Scope of Services
Consultant will provide WRAP administration, outreach, and fund disbursement services to support the efficient, transparent, and equitable delivery of water bill assistance to income-eligible households throughout Santa Clara County for calendar years 2027 and 2028.
Negotiations with Consultant have been completed successfully. Staff recommends Board approval of the Standard Consultant Agreement with Sacred Heart Community Service to provide WRAP consulting services for two years with a total not-to-exceed fee of $660,000. As noted, the Agreement provides Valley Water with two options, to exercise or not in its sole discretion, to extend the contract term for one additional year. If Valley Water exercise its first option for a one-year extension, Consultant will be paid a not-to-exceed amount of $336,600 for its services in this third year (2029). If Valley Water exercise its second option for a further one-year extension, Consultant will be paid a not-to-exceed amount of $343,332 for its services this fourth year (2030), which would result in a potential total not-to-exceed fee of $1,339,932 for services over four program years.
ENVIRONMENTAL JUSTICE IMPACT:
Staff identified the following potential impacts and benefits of WRAP to the communities listed below:
• Income-eligible households throughout Santa Clara County: WRAP helps maintain access to safe, clean drinking water by preventing water service disconnections.
• Residents with barriers to accessing assistance programs: WRAP provides multilingual outreach, application materials, and in-person assistance through Sacred Heart Community Service to improve access to the program.
To ensure meaningful engagement of these communities, Consultant will conduct outreach through multilingual communications, community events, and trusted community networks. Consultant will provide in-person application assistance, multilingual staff, and application materials in multiple languages to reduce language, technology, and access barriers. Because Consultant also administers other assistance programs, residents can learn about and access multiple services through a single trusted community resource.
FINANCIAL IMPACT:
The initial two-year term of the agreement is $660,000. Funding is included in the FY 2027 WRAP budget and approved FY 2028 WRAP budget plan. Staff will request funding for each option year, if exercised, through the annual budget approval process.
CEQA:
The recommended action to approve the Agreement does not constitute a project under the California Environmental Quality Act because it does not have the potential to result in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment A: Gov. Code Section 84308
Attachment 1: Agreement
UNCLASSIFIED MANAGER:
Manager
Rachael Gibson, 408-630-2884