City Council Agenda Report
June 17, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Glen W.C. Kau, P.E., Director of Public Services/City Engineer Jacqueline Koontz, P.E., Senior Civil Engineer
Michael Jea, P.E., Assistant Engineer
SUBJECT: RESOLUTION NO. 25-25 – BUDGET AMENDMENT TO THE FISCAL YEAR 2024/25 BUDGET AND AGREEMENT AMENDMENT NO. 2 FOR ANNUAL
WATER LOSS REPORTING
Background:
The California Department of Water Resources (DWR) requires urban retail water suppliers to submit an Annual Water Loss Report for every calendar year to comply with Senate Bill (SB) 555, adopted in 2015. The annual water loss report provides a systematic approach to auditing and managing water loss in the water distribution system. The report’s results help increase water supplies and recover revenues by identifying the scale and cost of these losses.
Arcadis, Inc. (Arcadis) has been assisting the City in the preparation and validation of its water loss reports from calendar year (CY) 2016 to CY 2022. The last Annual Water Loss Report for CY 2021 was completed in September 2022. On February 14, 2024 under the City Manager’s authority, the City approved an agreement in the amount of $36,000 with Arcadis to update the CY 2022, CY 2023, and CY 2024 Annual Water Loss Reports over a three-year term. The professional services provided by Arcadis assists the City with DWR regulatory compliance requirements.
The work scope (major tasks) for Annual Water Loss Reporting is listed below. Reports include, at a minimum:
•Additional review of Annual Water Loss Report for CY 2023, to resolve discrepancies between water consumption and supply data.
•Evaluation of the Current Real Loss Standard, to provide the City recommendations and training on how to fill out new questionnaires required by DWR. •Resubmission of Revised Audits for Prior Years, to evaluate and adjust the Current Real Loss Standard.
City Council June 17, 2025
Resolution No. 25-25 Budget Amendment
Agreement Amendment No. 2
Page No. 2
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During the preparation of annual reporting, technical review revealed errors in both data and documentation. To maintain compliance and ensure the City reports the most accurate data available, staff recommended re-submission of past reports. The re-submittals of the Annual Water Loss Reports will provide corrected data for the City’s water distribution system and may reduce compliance requirements in the future. Resolution No. 24-51 was adopted October 1, 2024, amending the budget and Amendment No. 1 with Arcadis was approved in the amount of $21,735.
Further review of City data under Amendment No. 1 has revealed that additional effort is needed to complete data revisions and report re-submissions. A second budget amendment and amendment of Arcadis’ agreement requesting additional funding in the amount of $23,768 will be necessary for them to finish regulatory compliance reporting through CY 2024.
Fiscal Impact:
Water Enterprise Funding will be utilized for Annual Water Loss Reporting. No General Fund monies will be used.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
N/A
Recommended Action:
Staff recommends City Council:
a. adopt Resolution No. 25-25, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK AUTHORIZING AN AMENDMENT TO THE FISCAL YEAR 2024/25
ADOPTED BUDGET TO APPROPRIATE AVAILABLE WATER ENTERPRISE FUNDING FOR ANNUAL WATER LOSS REPORTING, in the amount of $23,768; and b. approve Amendment No. 2 to the agreement with Arcadis, Inc. for Annual Water Loss Reports, in an amount not-to-exceed $23,768, for a total agreement amount of $81,503; and authorize the City Manager to execute the amendment on behalf of the City, in a form approved by the City Attorney.
Attachments:
1.Resolution No. 25-25
2.Campaign Contribution Form