Memorandum
Date: July 7, 2026
To: The Honorable Brad Rasmussen, Chair, Lake County Board of Supervisors
From: Robin Borre, Special Districts Administrator
Subject: Approve Agreement between the County of Lake and PACE Engineering, for Redwood Water Tanks Replacement Project, Phase II, total amount $128,005 and authorize the Chair to sign
Executive Summary:
The Redwood Water Tanks Replacement Project - Phase 2, funded by a FEMA Hazard Mitigation Grant, will replace the remaining two redwood water storage tanks (Tanks 3 and 4) at the Soda Bay site. PACE Engineering, Inc. (selected for continuity from the completed Phase 1) will provide updated engineering services under the proposed Professional Services Agreement. The agreement term is February 1, 2026, through June 30, 2027, with a not-to-exceed fee of $128,005.
Project Description:
The Redwood Water Tanks Replacement Project - Phase 2 will replace the remaining two redwood water storage tanks (Tanks 3 and 4) at the Soda Bay CSA-20 site, which were damaged during wildfire events, following completion of Phase 1 (Tanks 1 and 2) under the original 2018 Agreement with PACE Engineering for all four tanks. Per the approved FEMA HMGP scope of work (DR-4558-349-053), the project includes demolition of the two existing redwood tanks under applicable safety, dust control, and
disposal codes; installation of temporary above-ground poly-portable water tanks (one 10,000-gallon unit replacing Tank 3 and one 2,000-gallon unit replacing Tank 4) with associated piping and electrical to maintain continuous community water service during construction; and construction of new permanent bolted steel tanks on concrete pads with footings, supports, water mains, and underground electrical utilities, all within previously disturbed areas at the existing tank sites. Because the 2018 plans and specifications are outdated, PACE Engineering will prepare updated plans, technical specifications, and estimates fully compliant with the current California Building Code, California Fire Code (including wildfire ignition-resistant standards), seismic design provisions, Title 22 public water system regulations, and all other applicable federal, state, and local codes to ensure the new tanks deliver enhanced seismic and wildfire resilience as required for hazard mitigation funding eligibility.
Funding Explanation:
The project is funded through the U.S. Department of Homeland Security FEMA Region 9 Hazard Mitigation Grant Program (HMGP) under DR-4558-349-053, Supplement 93, as approved and obligated June 11, 2024, with a total project cost of $800,000 ($600,000 federal 75% share and $200,000 County non-federal 25% match from CSA-20 funds), plus $36,100 in 100% federal subrecipient management costs. An extension of the grant performance period has been approved through June 30, 2027, leaving a tight timeline for final design, competitive construction bidding in accordance with County purchasing ordinances and 2 CFR Part 200, construction, and closeout. The $128,005 engineering services fee under the proposed Professional Services agreement with PACE Engineering is an eligible pre-construction cost that will produce biddable, code-compliant documents protecting the federal investment; all expenditures will be tracked and documented in full compliance with 2 CFR Part 200 Uniform Administrative Requirements, the State HMGP Administrative Plan, and Lake County fiscal and purchasing policies.
Environmental Clearance:
Environmental review is complete: a Notice of Exemption (NOE) under CEQA was filed and recorded with the Lake County Clerk on April 16, 2025 (Document No. 2025-038), and FEMA has issued a Record of Environmental Consideration (REC) determining the project is Categorically Excluded (CATEX N7) under NEPA from the need for an Environmental Assessment or Impact Statement, as it involves improvements to pre-existing facilities on previously disturbed ground without altering basic functions or land use. The REC confirms compliance with the Clean Air Act, Clean Water Act, Executive Order 11988 (Floodplains - 8-step process completed with determination that the project is the only practicable alternative), Executive Order 11990 (Wetlands - no effect), Endangered Species Act (No Effect), National Historic Preservation Act (No Historic Properties Affected per SHPO concurrence), and Executive Order 12898 (no disproportionately high and adverse impacts on low- income or minority populations), with standard conditions for dust control during demolition, monitoring for unexpected cultural resource discoveries, and coordination with the local floodplain administrator that will be incorporated into the construction documents and enforced during implementation to protect continued grant eligibility.
If not budgeted, fill in the blanks below only:
Estimated Cost: Amount Budgeted: Additional Requested: ________ Future Annual Cost: ________
Consistency with Vision 2028 (check all that apply): ☐ Not applicable
☒ Well-being of Residents ☒ Public Safety ☒ Disaster Preparedness, Prevention, Recovery
☐ Economic Development ☒ Infrastructure ☐ County Workforce
☒ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
If request for exemption from competitive bid in accordance with County Code Chapter 2 Sec. 2-38, fill in blanks below:
Which exemption is being requested?
How long has Agreement been in place?
When was purchase last rebid?
Reason for request to waive bid?
Recommended Action: Approve Agreement between the County of Lake and PACE Engineering, for Redwood Water Tanks Replacement Project, Phase II, total amount $128,005 and authorize the Chair to sign.