ITEM 4. 17
CITY MANAGER' SREPORT
MARCH 10, 2025 CITY COUNCIL REGULAR MEETING
ITEM: CREATE CIP PW 25- 19 WATER CONSERVATION
REGULATORY COMPLIANCE PROGRAM, APPROVE
PROFESSIONAL SERVICES AGREEMENT WITH EKI
WATER AND ENVIRONMENT, INC., AND APPROVE
BUDGET AMENDMENT
RECOMMENDATION: Adopt Resolution to Create Regulatory Compliance Program PW 25- 19 Water Conservation, Approve a
Professional Services Agreement with EKI Water and
Environment, Inc., and Approve a Budget
Amendment
SUMMARY:
City staff requests that City Council create a new Regulatory Compliance Program RCP) PW 25- 19 Water Conservation and approve a Professional Services Agreement PSA) with EKI Water and Environment, Inc., (EKI). This agreement is to conduct a needs assessment on the impacts of the " Making Conservation a California Way of Life" (MCCWL) water conservation regulation and outline the necessary steps to ensure compliance.
Staff is seeking an initial budget allocation by transferring $ 30, 000from Water Fund 5620 to the new RCP PW 25- 19 through the approval of a budget amendment. This funding will enable us to effectively assess the requirements and develop a comprehensive plan for compliance.
Furthermore, staff requests City Council approve a Professional Services Agreement with EKI in the amount of $ 29, 400. This agreement is for conducting a needs assessment and creating a roadmap for ensuring compliance with the MCCWL regulation.
BACKGROUND:
On July 3, 2024, The State Water Resources Control Board ( State Water Board) officially approved the proposed MCCWL regulation, which serves to enforce Senate Bill ( SB) 606 and Assembly Bill ( AB) 1668. The regulation mandates that each urban water supplier must determine and adhere to an annual Urban Water Use Objective UWUO" or " Objective") and implement Commercial, Institutional, and Industrial CII) Performance Measures. These requirements must be reported on an annual basis, commencing January 1, 2024.
In order to assist staff in addressing these needs, EKI has prepared a proposal to provide the City with a structured plan to meet the regulatory requirements efficiently and effectively. The proposal involves organizing current data, identifying gaps, CITY MANAGER' S REPORT PAGE 2
MARCH 10, 2025, CITY COUNCIL REGULAR MEETING
CREATE RCP PW 25- 19 WATER CONSERVATION, APPROVE PROFESSIONAL SERVICES AGREEMENT WITH EKI WATER AND ENVIRONMENT, INC., AND
APPROVE BUDGET AMENDMENT
creating strategies to meet the program objectives, and incorporating performance measures for CII sectors into the City' s water conservation program.
REASON FOR RECOMMENDATION:
Staff requests that the City Council establish RCP PW 25- 19 Water Conservation with an initial budget of $ 30, 000 through transfer of funds from Fund 5620 to the new RCP PW 25- 19. Additionally, staff requests approval of a Professional Services Agreement ( PSA) with EKI in the amount of $ 29, 400. This agreement will enable EKI to conduct a comprehensive needs assessment and develop a strategic roadmap to ensure compliance with the MCCWL water conservation regulatory requirements.
FISCAL IMPACT:
The cost of the agreement with EKI is $ 29, 400. Staff requests that City Council approve a budget amendment to increase the appropriation for Water Fund 5620 by 30, 000 as follows:
Increase Appropriation
5620--0- 420- 010
ATTACHMENTS:
PW 25- 19 $ 30, 000
A. Resolution to Create Regulatory Compliance Program PW 25- 19 Water Conservation, Approve a Professional Services Agreement with EKI Water and Environment, Inc., and Approve a Budget Amendment
B. Professional Services Agreement with EKI Water and Environment, Inc., for the
MCCWL
Assessing
Regulation,
Impacts
RCP
and
PW
Developing
25- 19
a Compliance Roadmap for California' s
CITY MANAGER' SREPORT PAGE 3
MARCH 10, 2025, CITY COUNCIL REGULAR MEETING
CREATE CIP PW 25- 19 WATER CONSERVATION, APPROVE PROFESSIONAL SERVICES AGREEMENT WITH EKI WATER AND ENVIRONMENT, INC., AND
APPROVE BUDGET AMENDMENT
APPROVALS
Greg Gibson Date
Senior Civil Engineer
Brad Taylor
City Engineer
Cari Ja - s
Finance irector
Date
027/ 211/ 74, 2s—
Z-• 27• 2, 025 -
Date
Michael King Date
Assistant City Manager
Z • ZT• ZoZS'
2 Zy- z s
Salvador Navarrete Date
City Attorney
Z- 28 •'
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 25 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO CREATE REGULATORY COMPLIANCE PROGRAM PW 25- 19 WATER CONSERVATION,
APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH EKI WATER AND ENVIRONMENT, INC., AND APPROVE A BUDGET AMENDMENT
WHEREAS, staff requests that City Council create a new Regulatory Compliance Program ( RCP) PW 25- 19 Water Conservation and approve a Professional Services Agreement ( PSA) with EKI Water and Environment, Inc., ( EKI). This agreement is to conduct a needs assessment on the impacts of the " Making Conservation a California Way of Life" (MCCWL) water conservation regulation and outline the necessary steps to ensure compliance; and
WHEREAS, on July 3, 2024, The State Water Resources Control Board ( State Water Board) officially approved the proposed MCCWL regulation, which serves to enforce Senate BiII ( SB) 606 and Assembly Bill ( AB) 1668; and WHEREAS, the regulation mandates that each urban water supplier must determine and adhere to an annual Urban Water Use Objective (" UWUO" or Objective") and implement Commercial, Institutional, and Industrial ( CII) Performance Measures. These requirements must be reported on an annual basis, commencing January 1, 2024; and
WHEREAS, in order to assist staff in addressing these needs, EKI has prepared a proposal to provide the City with a structured plan to meet the regulatory requirements efficiently and effectively; and
WHEREAS, the proposal involves organizing current data, identifying gaps, creating strategies to meet the program objectives, and incorporating performance measures for CII sectors into the City' s
water conservation program; and
WHEREAS, the agreement with EKI comes at a cost of $ 29, 400. In order to proceed with this agreement, staff is seeking approval from the City Council to make a budget amendment. Staff requests that City Council approve a budget amendment to increase the appropriation for Water Fund 5620 by $ 30, 000 as follows:
Increase Appropriation
5620-0- 420- 010 PW 25- 19 $ 30, 000
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Lathrop does hereby create Regulatory Compliance Program ( RCP) PW 25- 19 Water Conservation; and
NOW, THEREFORE, BE IT FURTHER RESOLVED, the City Council of the City of Lathrop does hereby approve a Professional Services Agreement with EKI Water and Environment, Inc., in the amount of $ 29, 400 for engineering consulting services for the Water Conservation, RCP PW 25- 19; and
NOW, THEREFORE, BE IT FURTHER RESOLVED, the City Council of the City of Lathrop does hereby approve a budget amendment as detailed above.
The foregoing resolution was passed and adopted this 10th day of March, 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST:
Salvador Navarrete, City Attorney Teresa Vargas, City Clerk APPROVED AS TO FORM:
ATTACHMENT
n ( 3
n
CITY OF LATHROP
AGREEMENT FOR PROFESSIONAL SERVICES WITH EKI ENVIRONMENT & WATER.
TO ASSESS IMPACT AND DEVELOP A COMPLIANCE ROADMAP FOR
CALIFORNIA' SMCCWL REGULATION
THIS AGREEMENT, dated for convenience this 10th day of March, 2025, is by and between EKI Environment & Water. ("CONSULTANT") and the City of Lathrop, a California municipal corporation ("CITY");
RECITALS:
WHEREAS, CONSULTANT is specially trained, experienced, and competent to Assess Impact and Develop a Compliance Roadmap for California' sMCCWL Regulation, which are required by this agreement; and
WHEREAS, CITY selected the CONSULTANT pursuant to said qualifications; and WHEREAS, CONSULTANT is willing to render such Assessment of Impact and Develop a Compliance Roadmap for California' sMCCWL Regulation, as hereinafter defined, on the following terms and conditions;
NOW, THEREFORE, CONSULTANT and the CITY agree as follows:
AGREEMENT
1) Scope of Service
CONSULTANT agrees to Assess Impact and Develop a Compliance Roadmap for California' s MCCWL Regulation in accordance with the scope of work and fee proposal provided by CONSULTANT, attached hereto as Exhibit " A" and incorporated herein by reference. CONSULTANT represents it is prepared to and can diligently perform these services in accordance with the upmost standards of its profession and to CITY' S satisfaction. The fee proposal shall include all reimbursable costs required for the performance of the Scope of Services. Payment of additional reimbursable costs considered to be over and above those inherent in the original Scope of Services shall be approved of in advance and in writing, by the CITY.
2) Compensation
CITY hereby agrees to pay CONSULTANT a sum not to exceed $29, 400 to Assess Impact and Develop a Compliance Roadmap for California' s MCCWL Regulation set forth in Exhibit " A". CONSULTANT shall be paid any uncontested sum due and payable within thirty ( 30) days of receipt of billings containing all information pursuant to Paragraph 5 below. Compensation for any task must be equal to or less than the percentage of task complete. In no event shall CONSULTANT be entitled to compensation for work not included in Exhibit "A", unless a written change order or authorization describing the extra work and payment terms has been executed by CITY' s authorized representative prior to the commencement of the work. Payment is made based on a time and materials basis.
CITY OF LATHROP - EKI ENVIRONMENT & WATER
TO ASSESS IMPACT AND DEVELOP A COMPLIANCE ROADMAP FOR CALIFORNIA' S MCCWL
REGULATION
3) Effective Date and Term
The effective date of this Agreement is March 10, 2025, and it shall terminate no later than June 30, 2026.
4) Independent Contractor Status
It is expressly understood and agreed by both parties that CONSULTANT, while engaged in carrying out and complying with any of the terms and conditions of this Agreement, is an independent contractor and not an employee of the CITY. As an independent contractor, CONSULTANT is responsible for controlling the means and methods to complete the scope of work described in Exhibit "A" to City' ssatisfaction. CONSULTANT expressly warrants not to represent, at any time or in any manner, that CONSULTANT is an employee of the CITY.
5) Billings
CONSULTANT shall submit invoices for completed work on a monthly basis, or as otherwise agreed, providing without limitation, details as to amount of hours, individual performing said work, hourly rate, and indicating to what aspect of the Scope of Services said work is attributable. CONSULTANT' Sbills shall include a list of all tasks, a total amount due, the amounts previously billed, and the net amount due on the invoice. Except as specifically authorized by CITY, CONSULTANT shall not bill CITY for duplicate services performed by more than one person. In no event shall CONSULTANT submit any billing for an amount in excess of the rates or the maximum amount of compensation provided in section ( 2) for either task or for the entire Agreement, unless modified by a properly executed change order.
6) Advice and Status Reporting
CONSULTANT shall provide the CITY with timely reports, orally or in writing, of all significant developments arising during performance of its services hereunder, and shall furnish to CITY such information as is necessary to enable CITY to monitor the performance of this Agreement.
CONSULTANT shall submit to CITY such reports, diagrams, drawings and other work products developed pursuant to the Scope of Services.
7) Assignment of Personnel
CONSULTANT acknowledges that the CITY has relied on CONSULTANT' scapabilities and on the qualifications of CONSULTANT' sprincipals and staff as identified in its proposal to CITY. The services shall be performed by, or under the direct supervision, of CONSULTANT' sAuthorized Representative: Jonathan Sutter, P. E. CITY shall be notified by CONSULTANT of any change of its Authorized Representative, and CITY is granted the right of approval of all original, additional, and replacement personnel at CITY' ssole discretion,
project staff
and
prior
shall
to any
be
change.
notified by CONSULTANT of any changes of CONSULTANT' s
CITY OF LATHROP - EKI ENVIRONMENT & WATER
TO ASSESS IMPACT AND DEVELOP A COMPLIANCE ROADMAP FOR CALIFORNIA' S MCCWL
REGULATION
CONSULTANT shall assign only competent personnel to perform services pursuant to this Agreement. If CITY asks CONSULTANT to remove a person assigned to the work called for under this Agreement, CONSULTANT agrees to do so immediately, without requiring the City to process a reason or explanation for its request. 8) Assignment and Subcontracting
It is recognized by the parties hereto that a substantial inducement to CITY for entering into this Agreement was, and is, the professional reputation and competence of CONSULTANT. Neither this Agreement nor any interest therein may be assigned by CONSULTANT without the prior written approval of CITY' Sauthorized representative.
CONSULTANT shall not subcontract any portion of the performance contemplated and provided for herein, other than the subcontractors noted in the proposal, without prior written approval of the CITY' Sauthorized representative. 9) Insurance
On or before beginning any of the services or work called for by any term of this Agreement, CONSULTANT, at its own cost and expense, shall carry, maintain for the duration of the Agreement, and provide proof thereof that is acceptable to the CITY the insurance specified in subsections ( a) through ( c) below with insurers and under forms of insurance satisfactory in all respects to the CITY. CONSULTANT shall not allow any subcontractor to commence work on any subcontract until all insurance required of the CONSULTANT has also been obtained for the subcontractor. Verification of this insurance shall be submitted and made part of this Agreement prior to execution. a) Workers' Compensation. CONSULTANT shall, at CONSULTANT' Ssole cost and expense, maintain Statutory Workers' Compensation Insurance and Employer' s Liability Insurance for any and all persons employed directly or indirectly by CONSULTANT. Said Statutory Workers' Compensation Insurance and Employer' s Liability Insurance shall be provided with limits of not less than one million dollars ($ 1, 000,0). In the alternative, CONSULTANT may rely on a self- insurance program to meet these requirements provided that the program of self- insurance complies fully with the provisions of the California Labor Code. The insurer, if insurance is provided, or the CONSULTANT, if a program of self- insurance is provided, shall waive all rights of subrogation against the CITY for loss arising from work performed under this Agreement.
b) Commercial General and Automobile Liability Insurance. CONSULTANT, at CONSULTANT' Sown cost and expense, shall maintain commercial general and automobile liability insurance for the period covered by this Agreement in an amount not less than one million dollars ($ 1, 000,0) per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.
CITY OF LATHROP - EKI ENVIRONMENT & WATER
TO ASSESS IMPACT AND DEVELOP A COMPLIANCE ROADMAP FOR CALIFORNIA' S MCCWL
REGULATION
Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non -owned automobiles.
Coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 ( ed. 11/ 88) and Insurance Services Office Automobile Liability form CA 0001 ( ed. 12/ 90) Code 1 ( any auto).
Each of the following shall be included in the insurance coverage or added as an endorsement to the policy:
i) CITY, its officers, employees, agents, and volunteers are to be covered as insured with respect to each of the following: liability arising out of activities performed by or on behalf of CONSULTANT, including the insider' s
general supervision of CONSULTANT;
products and completed operations of CONSULTANT; premises owned, occupied or used by CONSULTANT. The coverage shall contain no special limitations on the scope of protection afforded to CITY, its officers, employees, agents, or volunteers.
ii) The insurance shall cover on an occurrence or an accident basis, and not on a claim made basis.
iii) An endorsement must state that coverage is primary insurance and that no other insurance affected by the CITY will be called upon to contribute to a loss under the coverage.
iv) Any failure of CONSULTANT to comply with reporting provisions of the policy shall not affect coverage provided to CITY and its officers, employees, agents, and volunteers.
v) Insurance is to be placed with California -admitted insurers with a Best' srating of no less than A: VII.
vi) Notice of cancellation or non -renewal must be received by CITY at least thirty days prior to such change.
c) Professional Liability. CONSULTANT, at CONSULTANT' Sown cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than Two Million Dollars ($ 2, 000,0) per claim made and per policy aggregate covering the licensed professionals' errors and omissions, as follows:
i) Any deductible or self -insured retention shall not exceed $ 150, 00 per claim.
CITY OF LATHROP - EKI ENVIRONMENT & WATER
TO ASSESS IMPACT AND DEVELOP A COMPLIANCE ROADMAP FOR CALIFORNIA' S MCCWL
REGULATION
ii) Notice of cancellation, material change, or non - renewal must be received by the CITY at least thirty days prior to such change shall be included in the coverage or added as an endorsement to the policy.
iii) The policy must contain a cross liability or severability of interest clause.
iv) The following provisions shall apply if the professional liability coverages are written on a claims made form:
1. The retroactive date of the policy must be shown and must be before the date of the Agreement.
2. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the Agreement or the work, so long as commercially
available at reasonable rates.
3. If coverage is canceled or not renewed and it is not replaced with another claims made policy form with a retroactive date that precedes the date of this Agreement, CONSULTANT
must provide extended reporting coverage for a minimum of five years after completion of the Agreement or the work.
The CITY shall have the right to exercise at the
CONSULTANT' Scost, any extended reporting provisions of the policy should the CONSULTANT cancel or not renew
the coverage.
4. A copy of the claim reporting requirements must be
submitted to the CITY prior to the commencement of any
work under this Agreement.
d) Deductibles and Self -Insured Retentions. CONSULTANT shall disclose the self -insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. During the period covered by this Agreement, upon express written authorization of the CITY' s authorized representative, CONSULTANT may increase such deductibles or self -insured retentions with respect to CITY, its officers, employees, agents, and volunteers. The CITY' sauthorized representative may condition approval of an increase in deductible or self -insured retention levels upon a requirement that CONSULTANT procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.
e) Notice of Reduction in Coverage. In the event that any coverage required under subsections ( a), (b), or (c) of this section of the Agreement is reduced, limited, or materially affected in any other manner, CONSULTANT shall provide written notice to CITY at CONSULTANT' Searliest possible opportunity and in no case later than five days after CONSULTANT is notified of the change in coverage.
CITY OF LATHROP - EKI ENVIRONMENT & WATER
TO ASSESS IMPACT AND DEVELOP A COMPLIANCE ROADMAP FOR CALIFORNIA' SMCCWL
REGULATION
f)In addition to any other remedies CITY may have if CONSULTANT fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, CITY may, at its sole option:
i) Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;
ii) Order CONSULTANT to stop work under this Agreement or withhold any payment which becomes due to CONSULTANT
hereunder, or both stop work and withhold any payment, until CONSULTANT demonstrates compliance with the requirements hereof;
iii) Terminate this Agreement.
Exercise of any of the above remedies, however, is an alternative to other remedies CITY may have and is not the exclusive remedy for CONSULTANT' Sbreach.
10) Indemnification - CONSULTANT' S Responsibility
As to the CONSULTANT' S work hereunder, it is understood and agreed that ( a) CONSULTANT has the professional skills necessary to perform the work, (b) CITY relies upon the professional skills of CONSULTANT to perform the work in a skillful and professional manner, and ( c) CONSULTANT thus agrees to so perform.
Acceptance by CITY of the work performed under this Agreement does not operate as a release of said CONSULTANT from such professional responsibility for the work performed. It is further understood and agreed that CONSULTANT is apprised of the scope of the work to be performed under this Agreement and CONSULTANT agrees that said work can and shall be performed in a fully competent manner in accordance with the standard of care applicable to CONSULTANT' Sprofession.
CONSULTANT shall indemnify, defend, and hold CITY, its officers, employees, agents, and volunteers harmless from and against any and all liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused by the willful misconduct or negligent acts or omissions of CONSULTANT, its employees, subcontractors, or agents, or on account of the performance or character of this work, except for any such claim arising out of the negligence or willful misconduct of the CITY, its officers, employees, agents, or volunteers.
It is understood that the duty of CONSULTANT to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance of insurance certificates and endorsements required under this Agreement does not relieve CONSULTANT from liability under this indemnification and hold harmless clause.
This indemnification and hold harmless clause shall apply whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.
CITY OF LATHROP - EKI ENVIRONMENT & WATER
TO ASSESS IMPACT AND DEVELOP A COMPLIANCE ROADMAP FOR CALIFORNIA' S MCCWL
REGULATION
11) Licenses
If a license of any kind, which term is intended to include evidence of registration, is required of CONSULTANT, its employees, agents, or subcontractors by federal or state law, CONSULTANT warrants that such license has been obtained, is valid and in good standing, and CONSULTANT shall keep it in effect at all times during the term of this Agreement, and that any applicable bond has been posted in accordance with all applicable laws and regulations.
12) Business Licenses
CONSULTANT shall obtain and maintain a CITY of Lathrop Business License until all Agreement services are rendered and accepted by the CITY. 13) Termination
Either CITY or CONSULTANT may cancel this Agreement upon 30 days written notification to the other party. Upon termination, or completion of services under this Agreement, all information collected, work product and documents shall be delivered by CONSULTANT to CITY within ten ( 10) calendar days.
14) Funding
CONSULTANT agrees and understands that renewal of this agreement in subsequent years is contingent upon action by the City Council consistent with the appropriations limits of Article XIII ( B) of the California Constitution and that the Council may determine not to fund this agreement in subsequent years.
15) Notices
All contracts, appointments, approvals, authorizations, claims, demands, Change Orders, consents, designations, notices, offers, requests and statements given by either party to the other shall be in writing and shall be sufficiently given and served upon the other party if (1) personally served, (2) sent by the United States mail, postage prepaid, ( 3) sent by private express delivery service, or ( 4) in the case of a facsimile transmission, if sent to the telephone FAX number set forth below during regular business hours of the receiving party and followed with two ( 2) Days by delivery of a hard copy of the material sent by facsimile transmission. Personal service shall include, without limitation, service by delivery and service by facsimile transmission.
CITY OF LATHROP - EKI ENVIRONMENT & WATER
TO ASSESS IMPACT AND DEVELOP A COMPLIANCE ROADMAP FOR CALIFORNIA' S MCCWL
REGULATION
To City:
Copy to:
To Consultant:
16) Miscellaneous
City of Lathrop
City Clerk
390 Towne Centre
Lathrop, CA 95330
City of Lathrop
Department of Public Works
390 Towne Centre
Lathrop, CA 95330
MAIN: ( 209) 941- 7430
FAX: ( 209) 941- 7449
EKI Environment & Water, Inc..
Jonathan Sutter, P. E.
2001 Junipero Serra Blvd, Suite 300
Daly City, CA 94014
Federal ID # 94- 3087395
Lathrop Business License # 20137
a) Consent. Whenever in this Agreement the approval or consent of a party is required, such approval or consent shall be in writing and shall be executed by a person having the express authority to grant such approval or consent. b) Contract Terms Prevail. All exhibits and this Agreement are intended to be construed as a single document. Should any inconsistency occur between the specific terms of this Agreement and attached exhibits, the terms of this Agreement shall prevail.
c) Controlling Law. The parties agree that this Agreement shall be governed and construed by and in accordance with the Laws of the State of California. d) Definitions. The definitions and terms are as defined in these specifications. e) Force Majeure. Neither party shall be deemed to be in default on account of any delay or failure to perform its obligations under this Agreement, which directly results from an Act of God or an act of a superior governmental authority. f) Headings. The paragraph headings are not a part of this Agreement and shall have no effect upon the construction or interpretation of any part of this Agreement. g) Incorporation of Documents. All documents constituting the Agreement documents described in Section 1 hereof and all documents which may, from time to time, be referred to in any duly executed amendment hereto are by such reference incorporated in the Agreement and shall be deemed to be part of this Agreement.
CITY OF LATHROP - EKI ENVIRONMENT & WATER
TO ASSESS IMPACT AND DEVELOP A COMPLIANCE ROADMAP FOR CALIFORNIA' S MCCWL
REGULATION
h) Integration. This Agreement and any amendments hereto between the parties constitute the entire Agreement between the parties concerning the Project and Work, and there are no other prior oral or written agreements between the parties that are not incorporated in this Agreement.
i)
i)
Modification of Agreement. This Agreement shall not be modified or be binding upon the parties unless such modification is agreed to in writing and signed by the parties.
Ownership of Documents. All documents, photographs, reports, analyses, audits, computer media, or other material documents or data, and working papers, whether or not in final form, which have been obtained or prepared under this Agreement, shall be deemed the property of the CITY. Upon CITY' srequest, CONSULTANT shall allow CITY to inspect all such documents during the CONSULTANT' sregular business hours.
k) Provision. Any agreement, covenant, condition, clause, qualification, restriction, reservation, term or other stipulation in the Agreement shall define or otherwise control, establish or limit the performance required or permitted or to be required of or permitted by either party. All provisions, whether covenants or conditions, shall be deemed to be both covenants and conditions.
I) Severability. The invalidity in whole or part of any provision of this Agreement shall not void or affect the validity of any other provision of this agreement. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the provisions of this Agreement not so affected shall remain in full force and effect.
m) Status of CONSULTANT. In the exercise of rights and obligations under this Agreement, CONSULTANT acts as an independent contractor and not as an agent or employee of CITY. CONSULTANT shall not be entitled to any rights and benefits accorded or accruing to the City Council members, officers or employees of CITY, and CONSULTANT expressly waives any and all claims to such right and benefits.
n) Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and shall apply to and bind, the successors and assigns of the parties. o) Time of the Essence. Time is of the essence of this Agreement and each of its provisions. In the calculation of time hereunder, the time in which an act is to be performed shall be computed by excluding the first Day and including the last. If the time in which an act is to be performed falls on a Saturday, Sunday or any Day observed as a legal holiday by CITY, the time for performance shall be extended to the following Business Day.
p) Venue. In the event that suit is brought by either party hereunder, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of San Joaquin or in the United States District Court for the Eastern District of California.
CITY OF LATHROP - EKI ENVIRONMENT & WATER
TO ASSESS IMPACT AND DEVELOP A COMPLIANCE ROADMAP FOR CALIFORNIA' S MCCWL
REGULATION
q) Recovery of Costs. The prevailing party in any action brought to enforce the terms of this Agreement or arising out of this Agreement may recover its reasonable costs, including reasonable attorney' sfees, incurred or expended in connection with such action against the non -prevailing party.
17) Notice to Proceed
Prior to commencing work under this agreement, CONSULTANT shall receive a written Notice to Proceed" from CITY. A Notice to Proceed shall not be issued until all necessary bonds and insurances have been received. City shall not be obligated to pay CONSULTANT for any services prior to issuance of the Notice to Proceed. 18) Signatures
The individuals executing this Agreement represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Agreement on behalf of the respective legal entities of the CONSULTANT and the CITY. This agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.
CITY OF LATHROP - EKI ENVIRONMENT & WATER
TO ASSESS IMPACT AND DEVELOP A COMPLIANCE ROADMAP FOR CALIFORNIA' S MCCWL
REGULATION
Approved as to Form: City of Lathrop
City Attorney
Salvador Navarrete Date
Recommended for Approval: City of Lathrop
Assistant City Manager
Michael King Date
Approved by: City of Lathrop
City Council Approval:
390 Towne Centre Drive
03/ 10/ 2025 Lathrop, CA 95330
Resolution No:
Consultant:
Stephen J. Salvatore Date
City Manager
EKI Environment & Water, Inc.
Jonathan Sutter, P. E.
2001 Junipero Serra Blvd, Suite 300
Daly City, CA 94014
Phone: (650) 292- 9100
Federal ID # 94- 3087395
Lathrop Business License # 20137
Signature Date
Print Name and Title
Signature Date
Print Name and Title
EXHIBIT ..•1..,
e
environment
water
January 30, 2025
Greg Gibson
Senior Civil Engineer
City of Lathrop — Public Works Department
390 Towne Centre Drive
Lathrop, CA 95330
Corporate Office
2001 Junipero Serra Boulevard, Suite 300
Daly City, CA 94014
650) 292- 9100
ekiconsult. com
Subject: Proposal for Assessing Impacts and Developing a Compliance Roadmap for California' s MCCWL Regulation
City of Lathrop
C40343)
Dear Mr. Gibson:
EKI Environment & Water, Inc. (EKI) is pleased to submit this proposal for consulting services to assist the City of Lathrop ( City) with an assessment of the impacts of the " Making Conservation a California Way of Life" (MCCWL) water conservation regulation and the steps needed to achieve compliance.
PROJECT UNDERSTANDING AND BACKGROUND
On July 3, 2024, The State Water Resources Control Board ( State Water Board) adopted the proposed MCCWL Regulation to implement Senate Bill (SB) 606 and Assembly Bill (AB) 1668. The regulation requires each urban water supplier to calculate and comply with an annual Urban Water Use Objective (" UWUO" or "Objective") and implement Commercial, Institutional, and Industrial ( CII) Performance Measures, both of which must be reported on annually starting January 1, 2024 ( although compliance with the Objective is not required until January 1, 2027).
In response to these requirements, the City has recognized the need to develop a comprehensive roadmap to achieve compliance with MCCWL. Specifically, the City has requested assistance to:
Outline recommended actions for compliance, identify responsible parties, and define support needs from other City departments.
Estimate the costs and resource requirements associated with compliance efforts.
Provide recommendations on whether to perform the work in- house or retain external consultants.
Assess the potential impacts of MCCWL compliance to inform the development of a Capital Improvement Plan ( CIP).
To address these needs, EKI has prepared the proposed scope of work ( SOW) herein to provide the City with a structured plan to meet the regulatory requirements efficiently and effectively. The work effort includes organizing existing data, identifying gaps, developing methodologies for complying with the Objectives, and integrating CII performance measures into the City' s water conservation program.
Davis, CA • Irvine, CA • Morin, CA • Oakland, CA
Denver, CO • Glastonbury, CT • Boston, MA • Holyoke, MA • New York, NY • Pittsboro, NC • Seattle, WA Greg Gibson
City of Lathrop
30 January 2025
PROPOSED SCOPE OF WORK
Task 1: Project Management and Coordination
e
environment
water
Task 1 includes project management and communication efforts over the project duration. EKI will participate in one ( 1) kickoff meeting and will perform project management tasks ( e.g., budget and schedule tracking, invoicing, and regular communications with the City) through the implementation of the scope of work described herein. Efforts associated with technical meetings and interviews with City staff are included in the specific tasks below.
Task 2: Data Collection and Data Gaps Assessment
This task will acquire and evaluate existing data and information, determine specific data gaps and work needed to comply with the data requirements of the MCCWL Regulation. EKI will compile and review existing water system data and documents prepared by the City, including, but not limited to, the following:
2020 - 2024 water consumption by sector and water supply data; 2023 - 2024 UWUO Reports;
Data available on the California OpenData portal used to automate the UWUO reporting template;
Available landscaping related data such as square footage of irrigable/ irrigated areas, etc.; The most current UWMP as well as draft and final Water and Recycled Water System Master Plans
Available City data on water use efficiency programs offered, historical participation rates, and water savings estimates.
Any water conservation related studies; and
CII landscape and CII Performance Measure related data, if available, such as total number of CII customers classified with dedicated irrigation meters ( DIMs) and/ or mixed use meters ( MUMs), identification of special landscape areas, identification of irrigated area for CII customers with DIMs; annual irrigation water use of DIMs, etc.
EKI will compile the information that is available publicly and through EKI' s past work efforts and prepare a request for information ( RFI) for the remaining data needs. We will conduct one (1) meeting with City staff to collaborate on data needs and gather information on data management and storage processes.
EKI will review the information collected and identify any data gaps or inconsistencies to comply with the data requirements of the MCCWL Regulation, such as the measurement of CII areas served by DIMs and the measurement of special landscape areas ( SLAs). EKI will develop a plan of recommended actions to fill data gaps with planning -level cost estimates and timeline.
Greg Gibson
City of Lathrop
30 January 2025
Task 3: Compliance Roadmap for Objectives
Qki environment
C & water
This subtask includes an initial gaps assessment of whether the City is anticipated to meet its future Objectives, and includes the following efforts:
Calculate the City' sObjectives with forecasts for the next ten years ( i.e., fiscal year (FY) 2024 through 2034) and years 2035 and 2040 using data collected under Task 2.
Consider variances, bonus incentives, and temporary provisions that are applicable to the City.
Compare the results to the City' s actual water deliveries for FY 2023-4 as well as the most recent water use projections through 2040.
Assess the City' s overall anticipated compliance with the Objectives and any components that may be of concern ( e.g., outdoor irrigation, water loss, etc.).
Based on the assessment, EKI will recommend actions for the City to meet the Objectives, such as conducting further water conservation studies to identify which programs, existing or to be established, have the potential to achieve the highest water savings to meet the annual Objectives and CII efficient water use performance measures. In addition, the EKI will evaluate opportunities to increase the City' s Objective through increasing data accuracy, such as performing the City' s own landscape area measurements to use in place of the outdated dataset provided by Department of Water Resources DWR).
Based on the best available information, EKI will estimate a planning -level cost, expected City staff hours, and/ orresources for each action item and prepare an implementation schedule, including deadlines for items listed in the MCCWL Regulation.
EKI understands that irrigation in the River Islands development area is served by the River Islands non - potable system and its water use is currently not reported on UWUO reports. EKI will acknowledge this fact in the Objectives assessment and identify any future information or coordination needed with the Reclamation District 2062 non -potable water system.
Task 4: Compliance Roadmap for CII Performance Measures Subtask 4. 1: CII Account Classification Requirements
This CII Performance Measure requires classification of CII accounts based on customer end use and is pursuant to Section 972 of the Conservation Framework with a compliance deadline of June 30, 2027.
Additionally, by June 30, 2028 and thereafter, suppliers shall annually maintain at least 95% classification rate of CII end users. CII accounts are to be classified based on customer end use, in accordance with the 18 Energy Star Portfolio Manager' s broad categories ( e.g. banking services, education, office, retail, utility, etc.) including four additional CII categories of laundries, landscapes with DIMs, water recreation and car wash.
EKI understands that the City has not classified its accounts pursuant to Section 972. To assess the impacts of this requirement, EKI will perform the following tasks:
Greg Gibson
City of Lathrop
30 January 2025
e
environment
1 & water
Conduct an interview of City staff (e.g., from finance, IT, engineering, and building departments) to assess the City' s existing business classification processes and data management system; Develop recommended actions to classify accounts and maintain at least a 95% classification rate after the initial classification, addressing topics such as ( 1) tracking CII classifications within the City' s billing system and database and ( 2) procedures for identifying changes of account holders and verification of classifications;
Develop planning -level cost estimates or estimation of staff hours and resources for the action items and an implementation timeline.
Subtask 4. 2: CII Large Landscape Requirements
EKI will work with the City to identify the preliminary approach to comply with MCCWL Regulation Section 973. Pursuant to Section 973, a supplier shall either ( 1) by June 2027, identify all CII large landscapes with MUMs or (2) by June 2029, identify all CII large landscapes with MUMs, calculate water budgets for CII large landscapes with MUMs, and identify connections with estimated outdoor water use that exceeds the water budgets. Under this subtask, EKI will identify recommended actions and estimate the level of staff or consultant effort to identify all CII large landscapes with MUMs. For budget and scoping purposes, it is assumed that the City will comply with this requirement before June 2027 and will not be required to calculate water budgets for CII large landscapes with MUMs.
In addition, Section 973 requires suppliers to either ( 1) convert existing MUM into DIMs for all large landscape CII MUM customers, or (2) employ one in -lieu technology option out of Section 973 (b)( 2)( A-E) and offer three different BMPs to the CII large landscape customer. Suppliers are not required to have implemented MUM conversion to DIMs or the alternative option of employing in -lieu technology until June 2039. Given the far- off compliance deadline, there is little guidance from the State Water Board or third -party organizations on how to best implement large landscape MUM compliance.
As such, EKI' s effort under this subtask will focus on summarizing the requirements of Section 973 and identify the initial steps to comply with conversion of MUMs or implementation of BMPs and in lieu technology based on the best available information. The assessment will focus on identifying any existing City conservation programs or practices that align with the requirements or potential conservation studies. For example, as a first step, the City may benefit from a cost effectiveness study that helps determine whether installing DIMs or implementing BMPs and in lieu technology are in the City' s best interest. The study may assess (1) the City' s existing MUM infrastructure, (2) the approximate cost of each option, and ( 3) the estimated water savings of each option, and ( 4) the potential impacts on Objectives compliance from installing DIMS or implementing BMPs.
Subtask 4. 3: CII Best Management Practice Requirements EKI will assess the impacts and identify recommended actions to comply with Section 974, which includes implementing disclosable buildings, identifying top CII water users, and establishing BMPs for top water users.
Disclosable Building Requirements: To comply with the disclosable building requirements in Section 974 ( a), the City will need to develop a
reporting process and/ or mechanism to compile
and provide data to disclosable building property owners, if requested. EKI will use CaIWEPs Greg Gibson
City of Lathrop
30 January 2025
ek, environment
water
published Disclosable Buildings Toolkit to identify a list of all disclosable buildings in the City' s service area and prepare a map of the buildings. EKI will reference the disclosable building requirements and estimate the level of effort required to develop a reporting process/ mechanism
in response to Section 974 (a).
Top CII Water Users: To comply with MCCWL Regulation Section 974, suppliers shall identify their top CII water users and provide conservation programs with specific BMPs. By June 30, 2025 suppliers must identify existing CII customers at or above the 97. 5th and 80th percentiles for CII water use (" CII top water users") 1. If this task is not complied with until June 30, 2027, the supplier shall perform the same identification work but also take into account the CII classification categories. If compliance isn' tachieved until June 30, 2029, further work is required to identify CII water users that are inefficient according to key business activity indicators ( KBAIs). EKI recommends prioritizing the efforts for compliance with this section by June 30, 2025 as the most cost effective way to approach these requirements. As part of this subtask, EKI will reference the top CII water users requirements and estimate the level of effort to identify CII top water users on an annual basis. For budget and scoping purposes, it is assumed that the City will comply with this requirement before 2029 and will not be required to develop and track KBAIs.
BMP Implementation Requirements: For customers identified as CII top water users, suppliers must design and implement a conservation plan that includes multiple BMPs per list of approved options according to Sections 974 ( d)( e)( f). However, suppliers are not required to offer CII BMPs until 2039. EKI believes that as the compliance deadline approaches, more guidance from the State Water Board or third -party organizations as well as " cookie -cutter" CII water conservation programs will become available. Given the far- off compliance deadline, EKI will summarize the BMP implementation requirements, identify any existing City conservation programs or practices that align with the BMP options, and assess which of the BMP requirements remain to be addressed before 2039.
Task 5: Develop a Compliance Roadmap TM
Based on the analyses performed in Tasks 2-4, EKI will prepare a technical memorandum ( TM) to document the Roadmap for meeting the requirements of the MCCWL Regulation. The TM will summarize 1) regulatory requirements and deadlines, ( 2) findings of the data gaps and compliance assessments, including methodologies and assumptions, and ( 3) the Roadmap detailing the actions and information needed for the City to prepare for compliance, associated planning - level estimates of costs and resources, and implementation timeline. The recommendations will be organized by reporting, data identification, data management, and programmatic planning needs.
EKI has assumed one complete draft of the TM will be provided for the City' s review and comment.
Following receipt of comments, EKI will prepare the Final TM. EKI will conduct one ( 1) meeting with City staff to discuss the findings.
1 Suppliers are considered meeting this deadline if they identify and report top CII users in the 2025 UWUO Reports, due January 1, 2026.
Greg Gibson
City of Lathrop
30 January 2025
SCHEDULE
eki environment
water
EKI is prepared to start work on this project immediately upon authorization to proceed. We anticipate that the project be accomplished within approximately twelve ( 12) weeks from the notice to proceed, assuming timely provisions of data and information from the City.
COMPENSATION
Compensation for consulting services by EKI will be on a time and expense reimbursement basis in accordance with our current Schedule of Charges, dated 1 January 2025, attached. Based on the proposed Scope of Work described above, we propose a budget of $ 29, 400 as summarized in Table 1 below, which will not be exceeded without additional authorization from the Client.
Table 1. Proposed Cost by Tasks
Task
1 Description
Project Management and Coordination
Task Total
3, 500
2 Data Collection and Data Gaps Assessment 4, 500
3 Compliance Roadmap for Objectives 6, 400
4 Compliance Roadmap for CII Performance Measures 5, 400 5 Develop a Compliance Roadmap TM 9, 600
Total Estimated Budget 29, 400
TERMS AND CONDITIONS
Other than the scope of work, budget, and schedule herein, the work will be performed per the terms and conditions established in our current agreement with the City of Lathrop dated 11 April 2022.
We are pleased to have the opportunity to work with the City of Lathrop. Please call us at ( 650) 292- 9100 if you have any questions or wish to discuss this proposal in greater detail.
Greg Gibson
City of Lathrop
30 January 2025
Very truly yours,
EKI ENVIRONMENT& WATER, INC.
filk- kv.) an
ek, environment
water
Tina Wang, P. E. Andree Lee
Associate Engineer Vice President / Principal -In -Charge
AUTHORIZATION
Greg Gibson ( CLIENT)
Signed
Printed Name
Title
Date
Attachments
Schedule of Charges, dated 1 January 2025
Client/ Address: City of Lathrop
390 Towne Centre Drive
Lathrop, CA 95330 eki environment
water
Proposal/ Agreement Date: 30 January 2025 EKI Proposal/ Project # C40343. 00 SCHEDULE OF CHARGES FOR EKI ENVIRONMENT & WATER. INC. 1 January 2025 Personnel Classification Hourly Rate
Officer and Chief Engineer -Scientist 355
Principal Engineer -Scientist 343
Supervising I, Engineer - Scientist 333
Supervising II, Engineer -Scientist 319
Senior I, Engineer -Scientist 306
Senior II, Engineer -Scientist 295
Associate I, Engineer - Scientist 283
Associate II, Engineer -Scientist 267
Engineer - Scientist, Grade 1 248
Engineer -Scientist, Grade 2 234
Engineer -Scientist, Grade 3 215
Engineer -Scientist, Grade 4 193
Engineer - Scientist, Grade 5 170
Engineer -Scientist, Grade 6 148
Project Assistant 139
Technician 133
Senior GIS / Database Analyst 175
CADD Operator / GIS Analyst 152
Senior Administrative Assistant 167
Administrative Assistant 132
Secretary 111
Direct Expenses
Reimbursement for direct expenses, as listed below, incurred in connection with the work will be at cost plus fifteen percent 15%) for items such as:
a. Maps, photographs, reproductions, printing, equipment rental, and special supplies related to the work. b. Consultants, soils engineers, surveyors, drillers, laboratories, and contractors. c. Rented vehicles, local public transportation and taxis, travel, and subsistence. d. Special fees, insurance, permits, and licenses applicable to the work. e. Outside computer processing, computation, and proprietary programs purchased for the work.
A Communication charge for e- mail access, web conferencing, cellphone calls, messaging and data access, file sharing, local and long distance telephone calls and conferences, facsimile transmittals, standard delivery U. S. postage, and incidental in- house copying will be charged at a rate of 4% of labor charges. Large volume copying of project documents, e.g., bound reports for distribution or project -specific reference files, will be charged as a project expense as described above.
Reimbursement for company - owned automobiles, except trucks and four- wheel drive vehicles, used in connection with the work will be at the rate of sixty cents ($ 0. 60) per mile. The rate for company - owned trucks and four- wheel drive vehicles will be seventy- five cents ($ 0. 75) per mile. There will be an additional charge of thirty dollars ($ 30. 00) per day for vehicles used for field work. Reimbursement for use of personal vehicles will be at the federally allowed rate plus fifteen percent ( 15%).
CADD and other specialized software computer time will be charged at twenty dollars ($ 20. 00) per hour. In- house material and equipment charges will be in accordance with the current rate schedule or special quotation. Excise taxes, if any, will be added as a direct expense.
Rate for professional staff for legal proceedings or as expert witnesses will be at a rate of one and one- half times the Hourly Rates specified above.
The foregoing Schedule of Charges is incorporated into the Agreement for the Services of EKI Environment & Water, Inc. and may be updated annually.
PAGE LEFT
INTENTIONALLY
BLANK