Agenda Report
Fullerton City Council
MEETING DATE: JUNE 7, 2022
TO: CITY COUNCIL / CITY MANAGER
SUBMITTED BY: ERIC J. LEVITT, CITY MANAGER
PREPARED BY: MEG McWADE, PUBLIC WORKS DIRECTOR
AL SHAIKH, PRINCIPAL CIVIL ENGINEER
SUBJECT: MUNICIPAL WATER DISTRICT OF ORANGE COUNTY AGREEMENT FOR SHARED WATER PROGRAMS AND SERVICES
SUMMARY
Approve a Master Agreement for Shared Programs and Services Between the Municipal Water District of Orange County (MWDOC) and the City of Fullerton. The key shared services provided by MWDOC will encompass water efficiency, student education, water supply research and studies and mutual aid emergency training. The initial term of the agreement is five years with an optional extension for an additional five years, with a total not-to-exceed amount of $1,000,000.
RECOMMENDATION
Approve Agreement for shared water programs and services between the City of Fullerton (Fullerton) and the Municipal Water District of Orange County for an initial term expiring June 30, 2027, with an optional extension for an additional five years, in a total not-to-exceed amount of $1,000,000 for the combined initial and extension term.
Authorize and direct Public Works Director, or designee, to execute Agreement and any related documents and to take any and all actions as necessary to implement and administer Agreement, on behalf of the City of Fullerton.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The estimated annual average cost to the City for the services provided by MWDOC during the term of agreement totals $50,000 to $100,000 per year. The City’s funding obligation for this Agreement shall not exceed $500,000 for either the initial or extension term. The Agreement limit shall not exceed $1,000,000 for the combined term. The actual costs by fiscal year will be contingent upon budget availability, the programs offered and the regulatory requirements within that timeframe.
DISCUSSION
For over ten years, the Public Works Department (Department) has worked with MWDOC to promote water conservation and education in Orange County as well as on projects related to regulatory compliance. MWDOC is a wholesale water supplier and resource planning agency representing 27 retail water agencies in Orange County. By partnering with another not-for-profit agency member of the Metropolitan Water District of Southern California (MWD), the Department has leveraged economies of scale to reduce costs and provide continuity throughout Orange County. The Department recommends entering into a cooperative Agreement that enables both agencies to partner in water conservation, education, supply analysis and mutual aid programs and services for the benefit of water customers.
Benefits of the Agreement include the ability to share best practices among the retail water agencies in Orange County, conduct water rate comparisons, cooperate on mutual aid emergency training and develop common strategies on water supply and conservation with respect to state regulations. Services contracted through MWDOC will have competitive bidding in accordance with their requirements. As an example, the Department worked cooperatively with MWDOC to procure consulting services for the development of the City of Fullerton’s 2020 Urban Water Management Plan utilizing common data for Orange County, resulting in cost savings of approximately $60,000 or 50% of the cost compared to the Department procuring its own consulting services.
The following table displays the anticipated breakout of expenses between shared programs and services over the five-year term of the Agreement:
Shared Services
Budget for Initial 5 Years
Total Budget for 10 Years
Water Efficiency
$5,000
$10,000
Student Education
$75,000
$150,000
Water Supply Research and Studies
$250,000
$500,000
Mutual Aid Emergency Training
$125,000
$250,000
Total:
$455,000
$910,000
Water Efficiency
At times, the City shares water efficiency programs. This agreement could give the City an opportunity to pursue regional approaches to water use efficiency with MWDOC.
Student Education
Since 2011, the Department has worked with MWDOC to provide water education to all public and private K through 6 elementary school students in the City of Fullerton. In particular, MWDOC partners with the Discovery Science Center and provides a series of classroom educational programs to teach students about the water cycle and the importance of conservation. Elementary students receive environmental education that supplements their existing science curriculum. Approximately 2,000 students from nine schools in Fullerton participated in this partnership program in the past year. Approximately 70,000 students have benefitted from this program throughout Orange County. The high number of students allows MWDOC to competitively seek educational services at much lower rates per student.
Water Supply Research and Studies
Shared research services provide the Department the ability to participate in joint water resources planning studies that capture common issues affecting Orange County. These studies may include water supply reliability analyses, water supply and demand projections, master planning for water use efficiency, water system loss analysis and leak detection studies, preparation of urban water management plans and drought contingency plans, demand management studies, water loss audit and annual consumer confidence report preparation. The Department also anticipates participating in MWDOC collaborative efforts in developing methodologies for meeting the State’s upcoming water use reduction regulations in accordance with the SB 606 and AB 1668 requirement. The shared study will reduce costs for individual water agencies and ensure consistency in performing the study.
Mutual Aid Emergency Training
The Department participates in the Water Emergency Response Organization of Orange County (WEROC). MWDOC administers this program, coordinating emergency response to a major disaster on behalf of all Orange County water and wastewater agencies. Department staff participates in numerous emergency training events through WEROC that would not be available independently. The Agreement will facilitate the Department’s participation in the organization and enable staff to participate in training events with other nearby water agencies.
Attachments:
Attachment 1 – Shared Services Agreement with MWDOC
Agreement with Municipal Water District of Orange County June 7, 2022 - Page PAGE \* MERGEFORMAT 2