Agenda Report
Fullerton City Council
MEETING DATE: February 18, 2025
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: stephen bise, p.e., public works director PREPARED BY: RICHARD ARMENDARIZ, ASSISTANT DIRECTOR OF PUBLIC WORKS – MAINTENANCE delaney felix, water quality supervisor
gar huang, associate engineer
SUBJECT: MUNICIPAL WATER DISTRICT OF ORANGE COUNTY MASTER AGREEMENT FOR SHARED PROGRAMS AND SERVICES AMENDMENT
SUMMARY
Approve Amendment to Master Agreement for Shared Programs and Services Between the Municipal Water District of Orange County and the City of Fullerton. The initial five-year agreement term has a $500,000 not-to-exceed amount with optional additional five-years with identical terms. The amendment would increase the initial term not-to-exceed amount to $1,500,000 with identical terms for optional five-year extension.
PROPOSED MOTION
Approve Amendment to Master Agreement for Shared Programs and Services Between the Municipal Water District of Orange County (MWDOC) and the City of Fullerton increasing the initial five-year term total not-to-exceed amount to $1,500,000.
Authorize and direct City Manager, or designee, to execute Amendment and related documents and take actions necessary to implement and administer Amendment on behalf of the City of Fullerton, subject to any non-substantive changes or modifications, including the optional five-year extension.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Reject amendment
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The City Manager recommends approval.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
The City funding obligation for the Amendment to Master Agreement shall not exceed $1,500,000 for the initial five-year term which has a not-to-exceed $500,000 increase from the Master Agreement.
The Agreement Limit shall not exceed $3,000,000 for the combined terms, should the City choose to extend the agreement for the additional five-year term. The actual costs by fiscal year will remain contingent upon budget availability, the programs offered and the regulatory requirements within that timeframe.
The Public Works operating budget within the Water Fund (Fund 44) includes costs for all services in the MWDOC Agreement.
BACKGROUND AND DISCUSSION
City Council approved the Master Agreement on June 7, 2022. MWDOC has offered additional shared services since that approval, spurred by new legislation and other economic factors. Additional services include:
Revised Lead and Copper Rule (LCRR) and Lead and Copper Rule Inventory (LCRI) The United States Environmental Protection Agency (US EPA) LCRR and LCRI require water agencies to inventory all service lines within their service area and develop a plan to replace any lead service lines found to reduce and prevent drinking water contamination.
Leak Detection
MWDOC Lead Detection services would assist the City in finding small service leaks which helps the City and customers reduce water costs and conserve water. The City could use the results to validate the Water Loss Control Audit, required annually per Senate Bill 555.
Conservation Technical Assistance Program
MWDOC will offer Technical Assistance Program (TAP) to help the City meet the Conservation as a California Way of Life Framework regulations adopted by the state in July 2024. The TAP would help staff develop a conservation program to set water use budgets and calculate the urban water use objectives as required to meet state water use regulations.
The following table displays the anticipated additional expenses between shared programs and services over the five-year term and extension of the Agreement:
Shared Service
Budget for
Initial 5 Years
(Remaining 2 years)
Total Budget for 10 Years
Original Agreement Estimate
$455,000
$910,000
LCRR and LCRI
$350,000
$350,000
Leak Detection
$150,000
$300,000
Conservation Technical Assistance Program
$450,000
$900,000
Total:
$1,405,000
$2,460,000
Staff expects the MWDOC Board of Directors to consider the Amendment on February 19, 2025 for formal Water District ratification.
Attachments:
Attachment 1 – Amendment to Master Agreement
cc: City Manager Eric J. Levitt
Agreement for Shared Programs and Services Amendment
February 18, 2025 - Page 2