To: Board of Supervisors
From: Ellen McDonnell, Public Defender
Report Title: Purchase Order with Quench USA, Inc. (Quench)
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
RATIFY the Public Defender's execution of a rental agreement containing terms and conditions, with Quench USA, Inc., totaling $24,670 for the period June 28, 2022 through June 28, 2026, and APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute on behalf of the Public Defender a purchase order with Quench USA, Inc. in an amount not to exceed $5,155 for the rental and maintenance of five (5) water dispensing machines for employee use, for the period June 28, 2025 through June 28, 2026.
FISCAL IMPACT:
Approval will ratify financial approval for the use of up to $24,670 of the department’s General Fund allocations, of which up to $5,155 will cover the last annual renewal cost, a contract term payment, and removal fees for all 5 machines.
BACKGROUND:
The Public Defender entered into a rental agreement with Quench USA, Inc. from June 28, 2022 to June 28, 2026, for the rental and maintenance of water dispensing machines at various Office of the Public Defender (CCPD) locations. CCPD selected Quench as they were identified as an approved vendor by one other county department, and decided to obtain Quench’s services with the goal of providing safe, filtered drinking water for staff.
Per the Board established policy Sales by Private Vendors in County Facilities and County Administrative Bulletin No. 614:
• The purchase of water for employees is considered an essential commodity only in cases where health concerns have been established.
• If the County Health Department determines that the tap water in a County building is not safe to consume, the County will pay for access to potable water or bottled drinking water to be delivered.
• If employees wish to have access to other water sources for other reasons (such as taste or convenience), they may do so at their own personal expense.
When County staff choose to have access to water other than the potable water available at County facilities, it is considered a personal expense and it is upon such staff to coordinate the purchase and individually or collectively make the purchase through employees’ personal funds and completed separated from County purchasing and procurement processes.
In 2022, the CCPD was unaware that these services and type of purchase required special approval and moved forward with establishing the agreement with Quench. In 2025, the CCPD was informed that the purchase of water for employee preference was not a County obligation, and realized that proper legal review and approval was also not obtained to enter into an agreement with Quench USA, which includes an indemnification clause requiring the County to defend, indemnify and hold harmless Quench from and against all claims and expenses relating to the equipment and the agreement, unless due to intentional conduct. The Department is submitting this board action to rectify its oversight of water provision policies and legal review of contracts with modified indemnification language.
While this was recently discovered, the rental agreement prohibits early termination outside of the annual renewal terms, and should the County decide to do so, an early termination fee would be imposed. CCPD has therefore obligated the County by the terms of the signed agreement through June 28, 2026, and the County Administrator’s Office has agreed that the continuation through June 28, 2026 is more cost effective than the early termination costs.
The CCPD is therefore requesting Board approval to ratify the execution of the rental agreement and allow the Purchasing Agent to issue a purchase order for the remaining costs, which will rectify the CCPD’s oversight.
Quench’s current invoices and the costs to return all leased equipment for the office locations below will total approximately $5,155 and the location costs are as follows:
1. 800 Ferry Street, Martinez - Two (2) Quench water dispensing machines - in an amount not exceeding $136/month
2. 627 Ferry Street, Martinez - One (1) Quench water dispensing machine - in an amount not exceeding $68/month
3. 3811 Bissell Avenue, Richmond - One (1) Quench water dispensing machine - in an amount not exceeding $68/month
4. 2020 N. Broadway, Suite 208, Walnut Creek - One (1) Quench water dispensing machine - in an amount not exceeding $68/month
At this time CCPD will not pursue water testing through the County’s Risk Management and/or Health Services Department and will instead discontinue services once the term agreement ends on June 30, 2026.
CONSEQUENCE OF NEGATIVE ACTION:
CCPD will be unable to satisfy all costs and termination fees associated with services provided by Quench USA, Inc. as stated in terms and conditions of binding agreement entered on June 28, 2022, between CCPD and Quench USA, Inc. for all water dispensing machines. Services will terminate indefinitely on June 28, 2026.