Santa Ana City Council
May 16, 2023

License Agreement Term (June 1, 2023 through May 31, 2024) Fiscal
Year
Accounting
Unit –
Account No.

Fund
Description
Accounting Unit,
Account Description Amount
2022-23
( June)
06717002-
53810
Regional
Transportation
Center

PWA- SARTC
Operations, Rental–
Greyhound
$4,500
2023-24
(July-May) 06717002-
53810
Regional
Transportation
Center

PWA- SARTC
Operations, Rental–
Greyhound
$49,500
Total: $54,000

EXHIBIT(S)

1. Site License Agreement with Greyhound Lines, Inc.

Submitted By: Nabil Saba, P. E. - Executive Director, Public Works Agency Approved By: Kristine Ridge, City Manager
City Council 22 – 2 5/16/2023
EXHIBIT 1
City Council 22 – 3 5/16/2023
City Council 22 – 4 5/16/2023
City Council 22 – 5 5/16/2023
City Council 22 – 6 5/16/2023
City Council 22 – 7 5/16/2023
City Council 22 – 8 5/16/2023
City Council 22 – 9 5/16/2023
City Council 22 – 10 5/16/2023
William C. Blankenship
President & COO
City Council 22 – 11 5/16/2023
City Council 22 – 12 5/16/2023
City Council 22 – 13 5/16/2023
Public Works Agency
www.santa-ana.org/public-works
Item # 23
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 16, 2023
TOPIC: Solid Waste Consultant Agreement Amendment: State Mandate Compliance Assistance
TITLE
Approve an Amendment to the Agreement with EcoNomics, Inc. to Modify the Scope of Work for Solid Waste Consultant Services, Increase the Agreement Capacity in an Amount not to Exceed $634,345, and Exercise the One-Year Term Extension (NonGeneral Fund)

RECOMMENDED ACTION
Authorize the City Manager to execute the fourth amendment to the agreement with EcoNomics Inc. to expand the solid waste consulting services scope of work, increase the total compensation by $574,345, with a contingency of $60,000, for a total additional amount not to exceed $634,345, and exercise the one-year extension expiring June 30, 2024, with the option to extend the term for one additional year, subject to nonsubstantive changes approved by the City Manager and City Attorney.

DISCUSSION
The Public Works Agency (PWA) has had successful work history with EcoNomics, Inc. (EcoNomics). Since 2019, EcoNomics has performed on a variety of State compliancerelated processes such as development of cost projections for organics diversion programs, municipal codes related to CALGreen building standards compliance and expansion of the CALGreen compliance program, development of enforcement mandates for new and existing State of California mandates, development of a citywide ordinance/Santa Ana Municipal Code revisions, City/County Payment Program reporting, and assistance with the transition to a new solid waste agreement.

The Public Works Agency intends to amend the agreement to modify the scope of work to include additional services such as solid waste program compliance assistance, contract transition assistance, and Senate Bill 1383 grant program implementation to comply with state mandates (Exhibit 1). The term and compensation will also be amended to allow sufficient time and contract capacity for the requested services.

City Council 23 – 1 5/16/2023
Solid Waste Consultant Services Agreement Amendment
May 16, 2023

FISCAL IMPACT
The total amount of the requested amendment is $634,345. Funding for FY 2023-24 will be included in the proposed budgets for City Council consideration.

Fiscal Year Accounting Unit –
Account #
Fund
Description
Accounting Unit,
Account Description
Amount
2023-24 06917640-62300
Refuse
Collection
Service
Refuse Collection Service,
Contract ServicesProfessional$634,345

EXHIBIT(S)

1. Fourth Amendment to Agreement with EcoNomics, Inc.

Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager
City Council 23 – 2 5/16/2023
1 FOURTH AMENDMENT TO AGREEMENT FOR

SOLID WASTE CONSULTING SERVICES
THIS FOURTH AMENDMENT to the above-referenced agreement is entered into on May 16, 2023, by and between EcoNomics, Inc. (“Consultant”), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (“City”).

RECITALS
A. The parties entered into Agreement No. N-2019-080, dated April 1, 2018, by which Consultant agreed to develop cost projections for an organics diversion program compliant with state law (“Agreement”).

B. On June 16, 2020, the Parties entered into a First Amendment to the Agreement to increase the scope of services, include additional compensation due to the increased services, and extend the term of the Agreement until June 30, 2021.

C. On June 15, 2021, the Parties entered into a Second Amendment to the Agreement to increase the scope of services, include additional compensation due to the increased services, and extend the term of the Agreement until June 30, 2022.

D. On June 21, 2022, the Parties entered in a Third Amendment to expand the scope of work, increase the amount and extend the term of the Agreement.

E. The Parties now wish to further amend the Agreement to expand the scope of work, increase the amount to be expended, and add a one (1)-year renewal option.

The Parties therefore agree:

1. Section 1, Scope of Services, shall be amended to include the additional services described and set forth in Exhibit A attached hereto, and incorporated herein by this reference.

2. Section 2.a, Compensation, shall be amended to increase the compensation by $574,345, plus a contingency of $60,000, for a total amount not to exceed $634,345, as described and set forth in Exhibit A, for the remainder of the term of this Agreement.

3. Section 3, Term, shall be amended to extend the term for an additional one year period from July 1, 2023 through June 30, 2024, with the option for the City to grant up to a one (1)-year renewal, exercisable by a writing by the City Manager and the City Attorney, unless terminated earlier in accordance with Section 15 of this Agreement.

4. Except as modified by this Fourth Amendment, all terms and conditions of the Agreement, as amended, shall remain in full force and effect.
[Signature page to follow]
EXHIBIT 1
City Council 23 – 3 5/16/2023
2 IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment to the Agreement on the date and year first written above.

ATTEST CITY OF SANTA ANA
_______________________________ ______________________________ JENNIFER L. HALL KRISTINE RIDGE
City Clerk City Manager

APPROVED AS TO FORM CONSULTANT
SONIA R. CARVALHO, City Attorney
By:___________________________ _______________________________ JOSE MONTOYA By:

Assistant City Attorney Title:

RECOMMENDED FOR APPROVAL
________________________________
NABIL SABA, P.E.

Executive Director,
Public Works Agency
Trevor Blythe
Secretary and Vice President
City Council 23 – 4 5/16/2023
1 City of Santa Ana
EcoNomics Proposed Budget Outline
Fiscal Year 2023-24

1. Baseline CalRecycle Consulting Proposal – Task Items • Task 1: CalRecycle Assistance
o Task Items
§ Assist with Corrective Action Plan (CAP) oversight and reporting • Every 2-month meetings with JACE
• Every 2-month reports
§ Assist with completion of 2022 and 2023 electronic annual reports to CalRecycle, including additional SB 1383 reporting elements § Assist with processing/verifying SB 1383 waivers referred by Republic § Assist in developing enforcement protocol for code enforcement § Prepare for and attend annual CalRecycle site visit/conference call § Assist with Form 303 submittal
§ Assist with developing implementation record-keeping as required by SB 1383
§ CalRecycle troubleshooting, as need
o Budget: $71,700
o SB 1383 Local Assistance Grant Eligibility: Full
• Task 2: CALGreen
o Task Items
§ Assist City with development of C&D deposit system
§ Assist in staff training for permit technician
§ Develop forms for use by permit tech
§ Compile reports and data for CalRecycle
§ Assist with enclosure standards development
§ Assist with projects on an ‘as-needed’ basis
o Budget: $30,040
o SB 1383 Local Assistance Grant Eligibility: Partial
• Task 3: Franchise Management
o Task Items
§ Prepare for and attend meetings with City and hauler
§ Prepare for and attend meetings with Republic recycling coordinators to manage implementation effort
§ Review of reports and other contractual deliverables
§ Query Recyclist to assess implementation pacing and efficacy § Assist with outreach design and review

EXHIBIT A
City Council 23 – 5 5/16/2023
2 § Assist with franchise interpretation, as needed
o Budget: $75,665
o SB 1383 Local Assistance Grant Eligibility: Partial
• Task 4: Edible Food Recovery Assistance
o Task Items
§ Analysis of listing to identify Tier 2 generators
§ Develop checklist for site inspections
§ Conduct site inspections to verify compliance for approx. 150 Tier 2 generators
§ Provide technical assistance to non-compliant generators § Provide reports to City and file in City’s internal SB 1383 implementation record
§ Coordinate with County to submit implementation planning documents o Budget: $47,540
o SB 1383 Local Assistance Grant Eligibility: Full
• Task 5: General Support and Other Tasks as Assigned
o Task Items
§ Other compliance and franchise management related tasks, as needed o Budget: $25,040
o SB 1383 Local Assistance Grant Eligibility: Partial
• Total annual budget Tasks 1-5
o $249,985
Table 1. Task 1 – 5 Budget Table Summary
City Council 23 – 6 5/16/2023
3 2. Additional SB 1383 Program Implementation Assistance Options, As Directed By City • Provide 3 FTE Recycling Coordinators to assist with SB 1383 automatic enrollment program implementation for 8 months
o Task Items
§ Provide 3 FTE recycling coordinators to assist with SB 1383 program implementation efforts for July 1, 2023 – February 29, 2024 to accelerate compliance with Corrective Action Plan (CAP)
§ Provide direct technical assistance to generators to implement statemandated programs and training § Includes additional management oversight and intern-level clerical support
§ *Assumes City has activated automatic enrollment approach, otherwise CAP goals are not attainable under current implementation pacing and timeline
o Budget: $324,360
o Tasks 1-5 + Option 3 Budget: $574,345
o SB 1383 Local Assistance Eligibility: Full
• Additional Optional, As Directed On-site Residency
• Provide director-level on-site staffing at Civic Center 2 days per week to assist with managing the SB 1383 automatic enrollment process
Table 2: Optional Tasks, as Directed by the City
City Council 23 – 7 5/16/2023
4 Table 3: Total Budget with Optional Tasks, As Directed by the City City Council 23 – 8 5/16/2023
5 City Council 23 – 9 5/16/2023
Public Works Agency
www.santa-ana.org/public-works
Item # 24
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 16, 2023
TOPIC: Solid Waste Consulting Services Agreement Amendment: On-Going Contract Assistance and Solid Waste Agreement Audit

AGENDA TITLE
Approve an Amendment to the Agreement with HF&H Consultants, LLC to Expand the Solid Waste Consultant Services Scope of Work, Increase the Agreement Amount by $234,000, and Exercise the One-Year Term Extension (Non-General Fund)

RECOMMENDED ACTION
Authorize the City Manager to execute the fourth amendment to the agreement with HF&H Consultants, LLC to expand the solid waste consulting services scope of work, increase the total compensation by $195,000, plus a contingency of $39,000, for a total additional amount not to exceed $234,000, and exercise the one-year term extension expiring June 30, 2024, with an option to extend the term for one additional year, subject to non-substantive changes approved by the City Manager and City Attorney.

DISCUSSION
HF&H Consultants, LLC (HF&H) previously assisted the City in establishing the City’s “Green Policy” and goals, negotiated an extension of the solid waste services agreement, developed a draft solid waste services Request for Proposal (RFP) and agreement, evaluated proposals, prepared contracts, and provided certain contract transition services.

The Public Works Agency (PWA) intends to amend the agreement to modify HF&H’s scope of work to include additional contract transition services such as monitoring of contract compliance and regulatory compliance, assistance with CalRecycle matters, and performance of solid waste services contract audit. The term and compensation will also be amended to allow sufficient time and contract capacity for the requested services (Exhibit 1).

FISCAL IMPACT
The total amount of the requested amendment is $234,000. As part of the City’s agreement with Republic Services, up to $95,000 of the audit expenditures are refundable to the City by Republic Services. Funding for FY 2023-24 will be included in the proposed budgets for City Council consideration:

City Council 24 – 1 5/16/2023
Solid Waste Consultant Services Agreement Amendment
May 16, 2023

Fiscal Year Accounting Unit
– Account #
Fund
Description
Accounting Unit,
Account Description Amount
2023-24 06917640-62300
Refuse
Collection
Service
Refuse Collection
Service, Contract
Services-Professional
$234,000

EXHIBIT(S)

1. Fourth Amendment to Agreement with HF&H Consultants
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager
City Council 24 – 2 5/16/2023
1 FOURTH AMENDMENT TO AGREEMENT FOR

SOLID WASTE CONSULTING SERVICES
THIS FOURTH AMENDMENT to the above-referenced agreement is entered into on May 16, 2023, by and between HF&H Consultants, LLC (“Consultant”), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (“City”).

RECITALS
A. The parties entered into Agreement No. A-2018-134, dated May 15, 2018, by which Consultant agreed to provide solid waste consulting services (“Agreement”).

B. On September 17, 2019, the Parties entered into a First Amendment to the Agreement to increase the scope of services, include additional compensation due to the increased services, and extend the term of the Agreement until June 30, 2022, with an option to extend the Agreement.

C. On June 15, 2021, the Parties entered into a Second Amendment to the Agreement to increase the scope of services and add additional compensation due to the increased scope of services.

D. On June 21, 2022, the Parties entered into a Third Amendment to the Agreement to expand the scope of services, and add additional compensation for those services.

E. The parties now wish to further amend the Agreement to expand the scope of work, increase the amount to be expended, and extend the term.

The Parties therefore agree:

1. Section 1, Scope of Services, shall be amended to include the additional services described and set forth in Exhibit A attached hereto, and incorporated herein by this reference.

2. Section 2.a, Compensation, shall be amended to increase the compensation by $195,000, plus a contingency of $39,000, for a total amount not to exceed $234,000, as described and set forth in Exhibit A, for the remainder of the term of this Agreement.

3. Section 3, Term, shall be amended to extend the term for an additional one year period from July 1, 2023 through June 30, 2024, with the option for the City to grant up to a one (1)-year renewal, exercisable by a writing by the City Manager and the City Attorney, unless terminated earlier in accordance with Section 15 of this Agreement.

4. Except as modified by this Fourth Amendment, all terms and conditions of the Agreement, as amended, shall remain in full force and effect.
[Signatures on next page]
EXHIBIT 1
City Council 24 – 3 5/16/2023
2 IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment to the Agreement on the date and year first written above.

ATTEST CITY OF SANTA ANA
_______________________________ ______________________________ JENNIFER L. HALL KRISTINE RIDGE
City Clerk City Manager

APPROVED AS TO FORM CONSULTANT
SONIA R. CARVALHO
City Attorney
By:___________________________ _______________________________ JOSE MONTOYA By:

Assistant City Attorney Title:

RECOMMENDED FOR APPROVAL
________________________________
NABIL SABA, P.E.

Executive Director,
Public Works Agency

LAITH EZZET
Senior Vice President
City Council 24 – 4 5/16/2023
Executive Project Manager Senior Associate
Laith Ezzet Lindsey Lagos Karla Del Rosario
$ 329 $ 249 $ 210 $ 195 $ 145
9A Attend Meetings 8 112 60 - 180 $ 37,852
9B Monitor Contractor Compliance 12 80 24 - 116 $ 25,428 9C Regulatory Compliance and Assistance with CalRecycle Matters 16 - 40 8 - 64 $ 15,224 9D Assist the City with reviewing City calculation of Annual Rate Adjustment 2 4 8 - 14 $ 3,334 9D Other tasks as directed by City Staff 8 4 37 28 8 85 $ 18,018 Subtotal 46 8 277 120 8 459 $ 99,856
$ 144
$ 100,000
10A Review of background documents and submittal of data request 1 9 6 11 - 27 $ 5,975 10B Completion of initial data analysis and virtual review of submitted data 10 62 65 90 - 227 $ 49,928 10C Documentation of findings and submittal of draft report 12 35 40 43 - 130 $ 29,448 10D Submittal of final report 8 10 10 8 5 41 $ 9,507
Subtotal 31 116 121 152 5 425 $ 94,858
$ 142
$ 95,000
Total Hours 77 124 398 272 13 884
Total Fees $ 25,333 $ 30,876 $ 83,580 $ 53,040 $ 1,885 $ 194,714 Total Expenses $ 286
Subtotal Before Contingency $ 195,000
Contingency (20%) $ 39,000
Total Fees & Expenses $ 234,000
*Hours may be shifted among tasks and staff
Admin
Expenses
Task 10 Fees & Expenses
Expenses
Task 8 Fees & Expenses
Task 10: Compliance Audit
HF&H Consultants, LLC
City of Santa Ana
Fee Estimate to Provide Ongoing Contract Monitoring Assistance & Compliance Audit Description
Labor
Task 9: Ongoing Contract Monitoring Assistance
Hours Fees
Associate Analyst
April 12, 2022 Page 1 HF&H Consultants, LLC

EXHIBIT A
City Council 24 – 5 5/16/2023
Public Works Agency
www.santa-ana.org/public-works
Item # 25
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 16, 2023
TOPIC: Construction Engineering Services for San Lorenzo Lift Station

AGENDA TITLE
Approve an Appropriation Adjustment and Approve an Agreement with Butier Engineering, Inc. for a Total Amount Not to Exceed $500,000 for Construction Engineering Services for San Lorenzo Sewage Lift Station (Non-General Fund)

RECOMMENDED ACTION

1. Approve an appropriation adjustment recognizing prior-year fund balance of $500,000 in the Sewer Connection Fee Fund, Sewer Connection Projects, Prior Year Carry Forward revenue account, and appropriating the same amount into the Sewer Connection Projects, Improvements Other Than Building expenditure account. (requires five affirmative votes)

2. Authorize the City Manager to execute an agreement with Butier Engineering, Inc. for construction engineering services, for a total agreement amount of $500,000 subject to non-substantive changes approved by the City Manager and the City Attorney.

3. Approve an amendment to the Fiscal Year 2022-23 Capital Improvement Program for $500,000 in construction funds for the San Lorenzo Sewer Lift Station Project (06-3510).

DISCUSSION
On October 1, 2019, the City Council authorized the City Manager to execute an agreement with Butier Engineering, Inc. (Butier Engineering) to provide construction engineering services for the San Lorenzo Sewer Lift Station project (Exhibit 1). Due to issues encountered during the construction of the project, the defaulting of the original contractor, and COVID-19-related delays, the $550,000 originally allocated for this agreement was depleted. On August 17, 2021, the City Council approved an amendment to the agreement to add $500,000 for construction engineering services (Exhibit 2).

The original agreement and amendment has since expired and construction engineering services for San Lorenzo Lift Station project through RFP No. 18-049 (Exhibit 3) are still City Council 25 – 1 5/16/2023
Amend Agreement for Construction Engineering Services
May 16, 2023

required through the remainder of the construction project. The new agreement with Butier Engineering details the services they will provide at the same fee detailed in the original agreement and fee proposal. (Exhibit 4).

FISCAL IMPACT
Approval of the requested appropriation adjustment will recognize $500,000 in prioryear fund balance in the Sewer Connection Fee Fund, Sewer Connection Projects, Prior Year Carry Forward revenue account (No. 05517002-50001), and appropriating the same amount into the Sewer Connection Projects, Improvements Other Than Building expenditure account (No. 05517660-66220).

Approval of the amendment to the FY 2022-23 Capital Improvement Program (Exhibit 5) will officially incorporate these funds in the amount of $500,000 to the program.

The following table summarizes the funds budgeted for expenditure on construction engineering services to deliver construction of this project. The current fiscal year funding is available in the FY 2022-23 budget. Any remaining balance not expended at the end of the fiscal year will be presented to City Council for approval of carryovers to FY 2023-24.

Fiscal
Year
Accounting Unit
- Account No.
(Project No.)
Fund
Description
Accounting Unit,
Account No.

Description
Amount
2022-23 05417647-66220
(06-3510)
Sanitary
Sewer
Capital
Capital Recovery
Charges,
Improvements
Other Than
Building
$500,000
Total $500,000

EXHIBIT(S)

1. Staff Report October 1, 2019

2. Staff Report August 17, 2021

3. RFP No. 18-049

4. Agreement with Butier Engineering

5. FY 2022-23 Capital Improvement Program Sheet
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager
City Council 25 – 2 5/16/2023

REQUEST FOR

COUNCIL ACTION
CITY COUNCIL MEETING DATE:

OCTOBER 1, 2019
TITLE:

APPROVE AN APPROPRIATION

ADJUSTMENTAND AWARD A

CONSTRUCTION CONTRACT TO

ROCKFORCE CONSTRUCTION, LLC, IN
AMOUNT OF $ 7, 606, 500 AND APPROVE AN

AGREEMENT WITH BUTIER ENGINEERING,
INC., TO PROVIDE CONSTRUCTION

ENGINEERING SERVICES FOR THE SAN

LORENZO SEWER LIFT STATION PROJECT
IN AMOUNT NOT TO EXCEED $ 550, 000 —
ESTIMATED TOTAL DELIVERY COST:
10, 058, 125
PROJECT NO 06- 3510)
STRATEGIC PLAN NOS. 6, 1 C & 1 G}
CLERK OF COUNCIL USE ONLY:

APPROVED
As Recommended
As Amended
Ordinance on 111 Reading
Ordinance on 2i1 Reading
Implementing Resolution
Set Public Hearing For
111111• 1 oil l1l0. i[•1
s/ Kristine Ridge FILE NUMBER

CITY MANAGER

RECOMMENDED ACTION

1. Approve an appropriation adjustment to spend $ 1, 416, 100 from prior year fund balance in the Sewer Connection Fee fund, Improvements Other Than Building expenditure account.

2. Award a contract to Rockforce Construction, LLC, the lowest responsible bidder, in accordance with the base bid in the amount of $ 7, 606, 500, for construction of the San Lorenzo Sewer Lift Station Project, for the term beginning upon execution of the contract and ending upon project completion, and authorize the City Manager to execute the contract subject to non -substantive changes approved by the City Manager and the City Attorney.

3. Authorize the City Manager to execute an agreement with Butier Engineering, Inc., to provide Construction Engineering Services for the San Lorenzo Sewer Lift Station project, for the three- year term beginning October 1, 2019, and expiring on September 30, 2022, with provisions for two one- year extensions exercisable by the City Manager and City Attorney, in the total amount not to exceed $ 550, 000, which includes a $ 479,572 project fee and a contingency of $ 70, 428, subject to non -substantive changes approved by the City Manager and City Attorney.

4. Approve the Project Cost Analysis for a total estimated delivery cost of $ 10, 058, 125, which includes the contract base bid, Construction Engineering Services agreement, administration, 20A- 1
EXHIBIT 1
City Council 25 – 3 5/16/2023
Award Construction and Construction Engineering Contracts for the San Lorenzo Sewer Lift Station Project
October 1, 2019

inspection and testing, and an authorized contingency of $ 1, 140, 975, to be paid with Sewer Connection Projects funding.

DISCUSSION
The City of Santa Ana Segerstrom Sewer Lift Station, located on the east side of Bristol Street, about 300 feet north of Segerstrom Avenue, has been in service since 1965. This City -owned facility is providing a service to a tributary area of approximately 380 acres and pumping approximately 1. 2 million gallons of sewage every day. Currently, this 55- year- old station has surcharge problems with upstream sewer mains and requires frequent maintenance and repair.

In addition, City maintenance crews and vehicles must divert traffic out of the northbound traffic lanes on Bristol Street to access the facility. Maintenance efficiencies can be improved by relocating the facility and replacing the failing pumps and equipment.

The proposed new San Lorenzo Sewer Lift Station will be located at the southwest corner of the intersection of San Lorenzo Avenue and Baker Street ( Exhibit 1). The scope of work includes approximately 880 linear feet of 15- inch and 12- inch gravity sewer mains and 600 linear feet of parallel 10- inch force mains, sewer manholes, sewer gate valves, 3 vertical dry pit sewage pumps, motors with variable frequency drives, in -line grinders, flow meter, underground concrete dry well and wet well, piping, fittings, and appurtenances. Moreover, this project will construct a new concrete masonry unit block building with a Heating, Cooling & Ventilation ( HVAC) system, ducting, rails, hoist system, gravity scrubber system, electrical and instrumentation; plus site grading, landscaping, and irrigation improvements. Once completed, the improvements will improve system efficiency, reliability, and enhance safety.

Project Construction: Public Outreach and Contractor Participation To provide an opportunity for local vendors to submit bids, a Notice Inviting Bids was advertised in the Orange County Register newspaper on April 5 and 9, 2019, and bids were received electronically via the City' s web -based electronic bidding system, PlanetBids, on July 9, 2019.

Through the PlanetBids online portal, vendors may register to receive notifications on all current and future City projects, as well as download contract documents, receive project updates and submit bids electronically.

A total of 137 vendors, including 7 located in the City of Santa Ana, were notified of the project via PlanetBids. 108 vendors requested bidding documents and 5 bids were received, including 1 bid from a Santa Ana contractor.
20A-2
City Council 25 – 4 5/16/2023
Award Construction and Construction Engineering Contracts for the San Lorenzo Sewer Lift Station Project
October 1, 2019

Bid Results Summary

RANK BIDDER' S NAME LOCATION BASE BID
1 Rockforce Construction, LLC. Lake Forest 7, 606, 500
2 MMC, Inc La Palma 7, 854, 000
3 Steve P. Rados, Inc. Santa Ana 9, 761, 700
4 PCL Construction, Inc. Long Beach 10, 712, 501
5 Lonerock, Inc. Irvine, 10, 714, 824
All 5 bids received were deemed responsive. Rockforce Construction, LLC. submitted the lowest responsive bid in the amount of $ 7, 606, 500 ( Exhibit 2). Based on the bid analysis and a contractor' s reference check, staff recommends awarding the construction contract to Rockforce Construction, LLC, in the amount bid ( Exhibit 3).

Construction Engineering Services
Currently, the Construction Services department is assisting with the construction management for the Orange County Streetcar project and providing field inspections, as well as ongoing coordination with other capital improvement projects. Therefore, the Construction Services department will utilize a consultant to oversee the San Lorenzo Sewer Lift Station project. The Public Works Agency issued a request for proposals ( RFP) on the City' s Website and notified qualified consulting firms to provide Construction Engineering Services for this project. Seven proposals were received and evaluated by a review committee from the Public Work Agency.

Each firm was rated according to its organization, credentials, resumes, references, and fees to provide the required services, the list of the firms and their respective scores are listed on the following table.

FIRM LOCATION SCORE
Butier Engineering, Inc. Tustin 88
MWH Constructors Pasadena 85
Interwest Consulting Group Huntington Beach 84
Lee & Ro, Inc. City of Industry 81
NV5 Irvine 79
Willdan Group Anaheim 79
GK & Associates Diamond Bar 71
Butier Engineering, Inc., is the top ranking consultant for this project. Their cost proposal was negotiated to ensure the City would receive the highest quality and value. Staff recommends that Butier Engineering, Inc. be retained and a contract awarded for construction engineering services 20A-3
City Council 25 – 5 5/16/2023
Award Construction and Construction Engineering Contracts for the San Lorenzo Sewer Lift Station Project
October 1, 2019

in the amount not to exceed $ 550,000, which includes a $ 479, 572 project fee and a contingency of $ 70, 428, for the term of the agreement ( Exhibit 4).

Protect Delivery
In order to deliver a complete project, in addition to the construction contract awarded to the lowest responsible bidder, the estimated total construction delivery cost of the project includes construction administration, inspection and testing, along with an allowance for contingencies to account for unexpected or unforeseen conditions. Construction administration and inspection includes construction management, implementation of the City' s Community Workforce Agreement requirements, inspection of the contractor' s work to ensure contract compliance, workmanship and quality, and material testing. As indicated in the Cost Analysis ( Exhibit 5) and as summarized in the table below, the estimated total construction delivery cost of the project is 10, 058, 125.

Construction Contract 7, 606, 500
Construction Engineering Services Agreement 550, 000
Inspection and Testing 608, 520
Construction Administration 152, 130
Contingencies 1, 140, 975
ESTIMATED CONSTRUCTION DELIVERY COST 10, 058, 125
Project funds will cover all staffing costs associated with the delivery of this capital project. No additional funding will be used.

STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City' s efforts to meet Goal # 6 — Community Facilities & Infrastructure, Objective # 1 ( establish and maintain a Community Investment Plan for all City assets), Strategy C ( invest resources and technology to extend the service life of existing infrastructure to protect the City' s investment and support a high quality of life standard) and Strategy G ( develop and implement the City' s Capital Improvement Program in coordination with the Community Investment Plan).

ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER- 2011- 04 was filed for the project.
20A-4
City Council 25 – 6 5/16/2023
Award Construction and Construction Engineering Contracts for the San Lorenzo Sewer Lift Station Project
October 1, 2019

FISCAL IMPACT
As indicated in the Cost Analysis ( Exhibit 5), the estimated total construction delivery cost of the project is $ 10, 058, 125, which includes the construction contract, contract administration, inspection, testing, and project contingency.

Approval of the requested Appropriation Adjustment will authorize expense of $ 1, 416, 100 from the prior year fund balance in the Sewer Connection Fee Fund - Improvements Other Than Building expenditure account ( No. 05517660- 66220). The estimated fund balance at June 30, 2019 is $ 12, 866, 589, which is sufficient for the proposed appropriation adjustment.

The following table summarizes the budget to deliver construction of this project:

Accounting Unit— Accounting Unit —
Fiscal Year Account No. Fund Description Account No. Amount Project No. Description
Sewer Connection
FY 2019- 20 05517660- 66220 Sewer Connection Projects — 10, 058, 125
Oct. - June Proj. 06- 3510) Fee Improvements Other
Than Building
Total 10, 058, 125
All Funds are scheduled for expenditure in Fiscal Year 2019- 20.

Fuad S. Sweiss, PE, PLS
Executive Director
Public Works Agency

FSS/TC/ MO
Exhibits: 1. Location Map

2. Bid Proposal

3. Construction Contract

4. Consultant Agreement

5. Cost Analysis
APPROVED AS TO FUNDS & ACCOUNTS:

Kathryn Downs, CPA
Executive Director
Finance and Management Services Agency
20A- 5
City Council 25 – 7 5/16/2023
Public Works Agency
https://www.santa-ana.org/pw
Item # 24
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
August 17, 2021
TOPIC: San Lorenzo Sewer Lift Station

AGENDA TITLE
Approve Appropriation Adjustment and Amendment to Agreement with Butier Engineering, Inc. for Construction Engineering Services to Increase the Agreement Amount by $379,714 and the Contingency by $56,957, for a Total Amount Not to Exceed $986,671 (Non-General Fund)

RECOMMENDED ACTION

1. Approve an appropriation adjustment recognizing prior-year fund balance of $681,343 in the Sewer Connection Fee Fund, Sewer Connection Projects, Prior Year CarryForward revenue account, and appropriating the same amount into the Sewer Connection Projects, Improvements Other Than Building expenditure account.

2. Authorize the City Manager to execute an agreement amendment for construction engineering services with Butier Engineering, Inc. for construction engineering services to increase the agreement amount by $379,714 and the contingency by $56,957 for a total agreement amount of $986,671, subject to nonsubstantive changes approved by the City Manager and the City Attorney.

3. Approve an amendment to the Fiscal Year 2021-22 Capital Improvement Program for $681,343 in construction funds, for the San Lorenzo Sewer Lift Station Project (06- 3510).

DISCUSSION
On October 1, 2019 City Council authorized the City Manager to execute an agreement with Butier Engineering, Inc. to provide construction engineering services for the San Lorenzo Sewer Lift Station project. Due to issues encountered during the construction of the project and COVID-19-related delays, the $550,000 originally allocated for this agreement was depleted.

Staff requests approval of an amendment to increase the agreement amount by $379,714 and the contingency by $56,957, for a total of $436,671 for construction engineering services. An additional $244,672 will be appropriated to this project to allow for continued EXHIBIT 2
City Council 25 – 8 5/16/2023
San Lorenzo Sewer Lift Station
August 17, 2021

oversight and consistency in delivering the project. These services augment City staff efforts to ensure the timely delivery of the project.

ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.

FISCAL IMPACT
Approval of the requested Appropriation Adjustment will recognize $681,343 in prior year funds balance in the Sewer Connection Fee Fund, Sewer Connection Projects, Prior Year Carry Forward revenue account (No. 05517002-50001), and appropriating the same amount into the Sewer Connection Projects, Improvements Other Than Building expenditure account (No. 05517660-66220).

Approval of the amendment to the FY 2021-22 Capital Improvement Program (Exhibit 2) will officially incorporate these funds in the amount of $681,343 to the program.

The following table summarizes the funds budgeted for expenditure on construction engineering services to deliver construction of this project.

Fiscal
Year
Accounting Unit -
Account No.
(Project No.)
Fund
Description
Accounting Unit -
Account No.

Description
Amount
Prior Authorized Funds
2019-20 05517660-66220
(06-3510)
Sewer
Connection
Fee
Sewer Connection
Projects,
Improvements
Other Than Building
$550,000
Additional Funds Requested
2021-22 05517660-66220
(06-3510)
Sewer
Connection
Fee
Sewer Connection
Projects,
Improvements
Other Than Building
$681,343
Total $1,231,343

EXHIBIT(S)

1. Amendment to Agreement with Butier Engineering

2. FY 2021-22 Capital Improvement Program Sheet
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager
City Council 25 – 9 5/16/2023
EXHIBIT 3
City Council 25 – 10 5/16/2023
City of Santa Ana RFP 18-049
Page ii

NOTICE INVITING PROPOSALS
NOTICE IS HEREBY GIVEN that proposals will be received from qualified firms for construction engineering services for the San Lorenzo Sewage Lift Station project.

Responses to this Request for Proposals (RFP) will be accepted until Tuesday, July 10, 2018; 2:00 p.m. Proposals received after this date/time will not be considered. It is the responsibility of the proposer to ensure that any proposals submitted have sufficient time to be received by the City of Santa Ana prior to this proposal due date and time.

Proposals shall be enclosed in a sealed envelope and marked clearly with following information, formatted as follows:
“SEALED PROPOSAL FOR
RFP NO. 18-049

CONSTRUCTION ENGINEERING SERVICES FOR

THE SAN LORENZO SEWAGE LIFT STATION

IN THE CITY OF SANTA ANA
DO NOT OPEN WITH REGULAR MAIL.”
City of Santa Ana
Attn.: Tyrone Chesanek
Public Works Agency;
20 Civic Center Plaza; 3rd Floor Reception, Ross Annex
Santa Ana, CA 92701
Proposals shall be mailed, hand delivered, or sent by courier service.

Proposals shall NOT be sent via telegraphic, electronic or facsimile.

All notifications, updates and addenda will be posted on the City’s RFP Bid page at www.santaana.org/bids-rfps. Proposers shall be responsible for monitoring the site to obtain information regarding this solicitation. Failure to respond to required updates may result in a determination of a nonresponsive proposal.

LETTER OF INTENT - Interested firms shall submit a Letter of Intent of their pending proposal to the noted Project Manager by the required date as shown on the cover page of this RFP.

Letters shall be forwarded via certified mail or email and shall include the following information:

1. Use formal company letterhead.

2. Indication of company interest in the RFP.

3. Acknowledgement of candidate's responsibility to monitor the City's website for any amendments or modifications to the RFP.

4. Provision of correct, complete contact information.

City Council 25 – 11 5/16/2023
City of Santa Ana RFP 18-049
Page iii

TABLE OF CONTENTS
I. INTRODUCTION / PROJECT DESCRIPTION 1
II. INSTRUCTIONS TO PROPOSERS 3
A. CITY RESPONSIBILITIES
B. PROPOSER RESPONSIBILITIES
C. REQUEST FOR INFORMATION OR CLARIFICATION
D. ADDENDA
E. LICENSES & PERMITS
F. INSURANCE
G. INFORMATION PACKET
H. PRE-PROPOSAL MEETING
I. CITY RIGHT TO REJECT
J. BID PROTESTS
III. SUBMITTAL REQUIREMENTS 5
A. GENERAL
B. PROPOSAL CONTENTS

1. STATEMENT OF QUALIFICATIONS

2. SCOPE OF SERVICES AND SCHEDULE

3. FEE PROPOSAL

4. CERTIFICATIONS
IV. PROPOSAL REVIEW (CONSULTANT SELECTION 6
A. EVALUATION AND RATING
B. SELECTION
V. CONTRACT AWARD 7
A. REQUEST FOR COUNCIL ACTION
B. EXECUTION OF AGREEMENT
VI. IMPLEMENTATION 7
A. KICK-OFF MEETING
B. NOTICE TO PROCEED
VII. PUBLIC RECORDS 7
VIII. APPENDIX
ATTACHMENT 1: SCOPE OF WORK
ATTACHMENT 2: AGREEMENT
ATTACHMENT 3: CERTIFICATIONS
City Council 25 – 12 5/16/2023
City of Santa Ana RFP 18-049

I. INTRODUCTION / PROJECT DESCRIPTION
Nature of Work:

The City of Santa Ana is seeking a qualified professional consulting firm to provide construction engineering services for the San Lorenzo Sewage Lift Station project. The consultant shall provide three individuals to act as a Project Manager, an Inspector and a Contract Administrator.

Plans and Specifications for the San Lorenzo Sewage Lift Station project are available for review by the proposer at the office of the Public Works Agency, Construction Engineering Section of the City of Santa Ana, located at 20 Civic Center Plaza, Ross Street Annex, Third floor. A detailed Scope of Work is included in the Appendix of this RFP as Attachment 1.

Number of Proposals and Signature:

Five (5) hard copies and one (1) digital file on labeled USB Flash Drive (or equivalent) of your proposal shall be signed by a company official with the power to bind the company and submitted to the City of Santa Ana. One (1) copy of your Fee Proposal shall be submitted.

The Statement of Qualifications shall be limited to a maximum of (10) double-sided pages (excluding front and back covers, section dividers and attachments such as resumes, forms).

Font size shall be minimum 11-point Arial. Proposal exhibits shall be maximum 11” x 17”.

Proposal Evaluation and Rating:

The criteria for evaluating the proposals submitted will take the following items into consideration:
 Firm/Team Experience 25%
 Understanding of Need 25%
 Relevant Project Experience 30%
 Schedule 10%
 References 10%
The City has established a proposal review committee to evaluate proposers based on the response to the RFP, which includes adherence to outlined directions and format, and the City evaluation criteria set forth above. A final score will be calculated for each submitted proposal and used to rank the proposers.

Prevailing Wages:

In accordance with the California State Labor Code, prevailing wage rates apply. Copies of the prevailing rate of per diem wages are on file with the Public Works Agency and shall be made available to any interested party on request.

Term of Contract Agreement:

The City desires to enter into a contract with the selected firm(s) for a period to be negotiated with the successful proposer based on the proposed schedule in the successful proposal and the needs of the City. This term will be specified in the Standard Consultant Agreement, as contained in the Appendix of this RFP as Attachment 2.

City Council 25 – 13 5/16/2023
City of Santa Ana RFP 18-049

City Council 25 – 14 5/16/2023
City of Santa Ana RFP

II. INSTRUCTIONS TO PROPOSERS
A. CITY RESPONSIBILITIES
The City will provide information in its possession relevant to preparation of required information in RFP. The City will provide only the staff assistance and documentation specifically referred to herein.

B. PROPOSER RESPONSIBILITIES
Point of Contact: The selected proposer will assume responsibilities for all services in its proposal. The selected proposer shall identify a sole point of contact with the greatest knowledge in regard to the required service operations and contractual matters, including payment of any and all charges resulting from the Agreement.

Evidence of Financial Capacity: Proposer may be requested to submit its most recent audited financial statement, evidencing proposer’s financial capacity to fully perform the required services, including provision of equipment and personnel expenses over a ninety (90) day period. If said financial statement does not reflect full ninety (90) day operational capacity, proposer may include a letter of credit as evidence of supplemental capacity.

C. REQUEST FOR INFORMATION OR CLARIFICATION
All questions or requested clarifications shall be made in writing via e-mail to the Project Manager (contact information as noted on the cover page to this RFP) no fewer than five (5) calendar days prior to the date and time set for opening of proposals. No verbal requests or responses will be accepted. Significant interpretations or clarifications will be addressed via addenda to this RFP.

D. ADDENDA
Any changes in RFP from the date of release to date of submittal will result in an addendum or amendment. Notification of such addendum or amendment shall be posted on City’s website, santa-ana.org/bids-rfps as set forth in the Notice Inviting Proposals. Addenda shall become part of the agreement documents.

E. LICENSES & PERMITS
The selected proposer shall be required to obtain a City of Santa Ana Business license within ten (10) business days of selection and must provide a copy to the City projects manager or designee prior to commencing any work in Santa Ana.

Additionally, Proposer will be responsible for obtaining any licenses/permits required by the Scope of Work.

F. INSURANCE
The Selected Proposer shall provide the required evidence of insurance coverage as set forth in the Scope of Work within ten (10) business days after receipt of notice that the contract has been awarded. Failure to provide the required insurance certificates shall be cause for the annulment of the award.

City Council 25 – 15 5/16/2023
City of Santa Ana RFP

G. PAYMENT INFORMATION PACKET
The selected proposer shall return a completed payment information packet within ten (10) business days after the successful proposer has received notice that the contract has been awarded. The packet is available on the City’s website: santa-ana.org/bids-rfps.

H. PRE-PROPOSAL MEETING
Should a pre-proposal be scheduled, the date, time and location is identified on the cover page of this RFP. The meeting will include discussion of the project scope and a questionand-answer session. It is highly recommended that the Proposer’s key team members attend this meeting. Significant interpretations or clarifications will be addressed via addenda to this RFP, as described above in “Section D: Addenda.”
I. CITY RIGHT TO REJECT
The City reserves the right to reject any or all proposals submitted and no representation is made hereby that any contract will be awarded pursuant to this RFP or otherwise.

The City reserves the right to accept or reject the combined or separate components of this proposal in part or in its entirety or to waive any minor inconsistency, informality or technical defect in the proposal.

The City reserves the right to reject, replace and approve any and all subcontractors. All subcontractor(s) shall be identified in the response to the RFP. Subcontractors shall be the responsibility of the successful proposer and the City shall assume no liability of such subcontractors.

J. BID PROTESTS
Proposers with concerns or rebuttal of any staff determination of non-responsiveness or nonresponsibility may submit, in writing within five (5) business days, to the Project Manager, any concerns regarding the RFP process or staff determination. Such writing shall be considered by the City Manager or his designated representative, and may be acted upon within five (5) business days. If no action is taken within such time, there shall be no change to the staff determination. The exercise by Proposer of its right to submit written concerns shall be a condition precedent to seeking judicial review of any award of a contract hereunder.

City Council 25 – 16 5/16/2023
City of Santa Ana RFP

III. SUBMITTAL REQUIREMENTS
A. GENERAL
I. The number of Proposal Copies and signature is specified in:

RFP SECTION I - INTRODUCTION / PROJECT DESCRIPTION.

II. Deadline:

Proposals are due to the City of Santa Ana at the date, time, and location specified in the Notice Inviting Proposals.

B. PROPOSAL CONTENTS
The proposal format and page limitation, if any, is specified in:

RFP SECTION I - INTRODUCTION / PROJECT DESCRIPTION.

1. STATEMENT OF QUALIFICATIONS
a. Cover Letter – Proposals shall include a letter signed by a principal or authorized representative who can make legally binding commitments for the entity. b. Contract Agreement Statement: Proposal shall include a statement outlining your concurrence or concerns with any and all provisions as contained in the Agreement attached herein as Attachment 2 in the Appendix.
c. Firm and Team Experience: Proposal shall include a profile of the firm’s experience.

Include resumes of project team/sub-consultants that will be providing services which outline their technical and design experience. At a minimum, this should include the project manager/principal agent, associates in charge when project manager/principal agent is unavailable, key personnel, firm size, and an organization chart identifying only those who will perform work for the proposed project and the percentage of each individual’s time devoted to this project. The project manager/principal agent shall be the primary contact person to represent your firm and will be the person to conduct the presentation, if invited for an interview.
d. Understanding of Need: Proposal shall include an outline which demonstrates the firm’s understanding of the work. This outline should include anticipated approach, tasks necessary for successful completion, deliverables, and suggestions or special concerns that the City should be made aware of. Identify any assumptions and/or exclusions used in preparation of the scope of work and associated fee estimate. e. Relevant Project Experience: Proposal shall include a list of projects which your firm or personnel have completed within the last 5 years, including significant work with public agencies. Project information should include project description, year completed, client name, along with a person to contact and their telephone number.

City Council 25 – 17 5/16/2023
City of Santa Ana RFP

f. References: Proposal shall include a listing of relevant projects with references for three public entities for which Proposer has performed similar work within the past five (5) years.

2. SCOPE OF SERVICES AND SCHEDULE:

Proposal shall include a Scope of Services and Schedule which details the work phases to be completed, the tasks to be accomplished, the deliverables to be provided, and the schedule / timeline to complete the project, based upon the requested Scope of Work detailed in Attachment 1 of this RFP.

3. FEE PROPOSAL:

The fee proposal shall be submitted concurrently with the technical proposal, but in a separately sealed envelope, clearly labeled as “Fee Proposal.” This shall include the firm’s Standard Hourly Fee Schedule, a table outlining the tasks and team hourly effort for each of the major tasks, and a Project Fee Schedule as outlined in the Scope of Work.

The fee proposal will not be opened until the proposals have been evaluated by the proposal selection committee. The City will select the consultant based on qualifications, and then negotiate a contract price based on available funding.

4. CERTIFICATIONS:

The following forms shall be signed and included as part of the proposal submittal package:
 Attachment 3-1: Non-Collusion Affidavit
 Attachment 3-2: Non-Lobbying Certification
 Attachment 3-3: Non-Discrimination Certification
IV. PROPOSAL REVIEW (CONSULTANT SELECTION)
A. EVALUATION AND RATING
The criteria for evaluating the proposals are specified in:

RFP SECTION I - INTRODUCTION / PROJECT DESCRIPTION.

B. SELECTION
The committee may interview the top ranking proposers. The City will recommend award of the contract to the proposer who will provide the best value to the City. City reserves the right to begin negotiations and enter into a contract without interview or further discussions.

V. CONTRACT AWARD
A. REQUEST FOR COUNCIL ACTION
City Council 25 – 18 5/16/2023
City of Santa Ana RFP

Following evaluation and rating by the proposal review committee, the Project Manager will recommend award of a contract to the proposer providing the best value to the City.

B. EXECUTION OF AGREEMENT
The Scope of Services, Schedule, and Fees submitted in the proposal will be the basis of any negotiation of final terms which will lead to a completed agreement ready for execution based on the standard Agreement attached herein as Attachment 2 in the Appendix.

VI. IMPLEMENTATION
A. KICK-OFF MEETING
A kick-off meeting will be held after award of contract. Consultant and its team will meet with City of Santa Ana staff to conduct introductions, discuss scope of services, and implementation process.

B. NOTICE TO PROCEED
Following the kick-off meeting, a formal Notice to Proceed (NTP) may be issued after the agreement is fully executed, and all required bonds, insurance documents and contents of the Information Packet have been received and approved.

For “On-Call” contracts, Consultant will be notified by individual City Project Managers on a case-by-case basis to request project/task specific proposals. Written NTPs will be then issued accordingly.

VII. PUBLIC RECORDS
All data, documents and other products used, developed, or produced during response preparation of the RFP will become property of the City. All responses to the RFP shall become property of the City. Proposer information identified as proprietary information shall be maintained confidential, to the extent allowed under the California Public Records Act.

Proposals will become public record after award of contract. Proposer information identified as proprietary information shall be maintained confidential, to the extent allowed under the California Public Records Act.

City Council 25 – 19 5/16/2023
City of Santa Ana RFP 18-049
Page A1-1
Appendix
ATTACHMENT 1

SCOPE OF WORK

CITY OF SANTA ANA

REQUEST FOR PROPOSALS
FOR

CONSTRUCTION ENGINEERING SERVICES FOR

SAN LORENZO SEWAGE LIFT STATION
RFP NO.: 17-115
Introduction and Background:

The City desires to engage a professional consultant to perform construction engineering services for the San Lorenzo Sewage Lift Station project. The consultant shall provide three individuals to act as Project Manager (PM), Inspector, and a Contract Administrator (CA), and serve as an extension of City staff to assist in the overall delivery of this project, including preconstruction tasks, managing construction and ensuring that the work is completed in accordance with the contract documents, and project closeout and warranty phase. The consultant team will report directly to the City’s Construction Manager or his authorized representative. City staff may assist in managing construction and will oversee the work of the Project Manager, Inspector, and Contract Administrator.

The estimated construction cost for the San Lorenzo Sewage Lift Station project is $6 million.

The City anticipates advertising construction bids in the early fall 2018, and starting construction by late 2018. Total construction duration for the project is anticipated to be 14 months.

Description of Work:

The required services by the Project Manager, the Inspector and the Contract Administrator may include the following:

1. The PM shall be a registered engineer in the State of California and shall represent the City Construction Manager in the field. The CM shall possess a minimum of (5) years’ experience in sewer lift station construction management.

The Inspector and the Contracts Administrator should have relevant experience in sewer lift station construction management and certifications that affirm the experience.

2. Prior to the start of the project, the PM shall be responsible for conducting a bid analysis to determine who the lowest responsible bidder for the project will be.

Shall obtain certificates of insurance, performance bond and “New Vendor Packet” requirements have been satisfied. This includes verifying that all subcontractors have a valid City Business License. Once determined, a staff report will need to be generated to recommend the award of a Construction Contract.

City Council 25 – 20 5/16/2023
City of Santa Ana RFP 18-049
Page A1-2

3. The PM shall be responsible for review of completeness and quantity of all required shop drawings, product data, samples and other submittals (“Submittals”). Shall transmit the Submittals to City staffing for review and approval, and shall establish and implement procedures for expediting the processing and approval of Submittals.

4. Attend pre-construction meeting and schedule and conduct weekly construction and progress meetings to discuss such matters as procedures, progress, problems and scheduling. Will prepare and promptly distribute minutes.

5. Shall be responsible for ensuring that all building permits and special permits, if required are obtained and that all applicable fees have been paid, and shall obtain approvals from authorities having jurisdiction over the Project.

6. Shall review construction schedule, including activity sequences and duration, schedule of submittals and schedule of delivery for products with long lead-time.

Update the project schedule as required showing current conditions and revisions required by actual progress.

7. Shall conduct comprehensive evaluation of change order requests, provide independent estimates, render recommendations and assist in claim resolution.

Shall regularly monitor and report on the status of the Project Construction Budget on a monthly basis, indicating actual costs for completed activities and work in progress, and indicating estimates for uncompleted work. Report should identify variances between actual and budgeted or estimated costs, and shall advise the City whenever it appears that the Actual Construction Cost has exceeded, or will exceed, the Project Construction Budget for the entire Project or any Project Component.

8. Monitor the contractor’s safety program. Take necessary steps to ensure the job site conditions are in compliance with OSHA regulations.

9. Maintain cost accounting records on authorized work performed under unit costs and additional work performed on the basis of actual costs of labor and materials, or other work requiring accounting records.

10. May develop and implement procedures for the review and processing of applications by contractor for progress and final payments. Make recommendations for certification to the City for payment.

11. Determine that the work of contractor is being performed in accordance with the contract documents. Make recommendations to the City regarding special inspection or testing of work not in compliance with the provisions of the contract documents. Subject to review by the City, reject work which does not conform to the requirements of contract documents.

12. The individuals, Project Manager, Inspector and Contract Administrator, shall City Council 25 – 21 5/16/2023
City of Santa Ana RFP 18-049
Page A1-3
not be responsible for construction means, methods, techniques, sequences and procedures employed by the contractor in the performance of the contract, and shall not be responsible for the failure of the contractor to carry out work in accordance with the contract documents. However, any errors, omissions, or discrepancies found in the Contract Documents shall be called to the attention of the City’s Construction Manager and clarified prior to construction starts.

13. Consult with the City when the contractor requests interpretations of the meaning and intent of the drawings and specifications, and assist in achieving the resolution of problems which may arise.

14. Record the progress of the project. Submit written daily and progress reports to the City. Keep daily logs containing a record of weather, contractor’s work on the site, number of workers and equipment, work accomplished, problems encountered, and other relevant data. Make the log available to the City. Prepare and send Weekly Statement of Working Days to the contractor. Monitor contractor's compliance with labor code requirements.

15. Maintain, at the job site, records of contract documents including drawings, addenda, change orders, and other modifications of plans and specifications marked to show all changes made during construction. Maintain as-built records of underground utilities, including locations and depths of trenches. At the completion of the project, deliver to the City all contract documents including asbuilt records.

16. Evaluate the completion of the work of the contractor and make recommendations to the City when work is ready for final inspection. Assist the City in conducting final inspections.

17. Facilitate and coordinate inspection by representatives of other agencies.

18. Schedule and coordinate special inspection and material testing with the County of Orange or other consultants.

19. Shall monitor and enforce prevailing wage forms and requirements for conformance to the prevailing wage rates on a weekly basis. Shall verify that all Trade personnel listed in the daily log are also listed in the certified payroll and shall conduct weekly employee interviews, one for each trade, and submit verification with the monthly progress payments.

20. Shall monitor and enforce the City’s Community Workforce Agreement (CWA) forms and requirements to ensure compliance. Verification should be provided with the monthly progress payments.

21. The PM shall be responsible for all project closeout items, such as: As-Built plans and related documentation, punch list completion, commissioning, warranty requests during the one-year period. Shall schedule and oversee the City Council 25 – 22 5/16/2023
City of Santa Ana RFP 18-049
Page A1-4
warranty repair. Should include site visits as requested by the City to look at defects or imperfection to determine if it is a warranty issue.

The city reserves the right to add or reduce some of the above tasks and duties as it sees fit. The consultant, serving as staff extension, shall remain sufficiently flexible to meet the needs of the City and of the project.

City Responsibilities:

1. Provide a testing laboratory for special inspection and material testing and other quality assurance program as required by the contract documents.

2. Process progress payments upon receipt of approved payment requests from the resident engineer/inspector.

3. Furnish copies of construction documents, including plans and specifications.

4. Communicate with other consultant to review shop drawings and submittals, respond to requests for information and revise plans if needed.

5. Provide a field office for the Project Manager, the Inspector and the Contract Administrator.

6. Coordinate with the CM and serve as liaison with other City departments Fee Proposal:

In addition to Section III.B.3 (Submittal Requirements: Fee Proposal) fee schedule shall be structured as follows:

The cost proposal must include the projected staff hours, hourly rates, unit prices and reimbursable expenses for the project, as follows:
[I] Itemized estimated breakdown for services for construction engineering services for the duration of construction. The breakdown should include pre-construction services, construction services, and warranty period services.
a. Personnel costs - Itemized to show the following:

1. Personnel by classification/responsibilities.

2. Hourly rate for each classification.

3. Estimated hours for each personnel category.

4. Subtotal cost for each category.

5. Total estimated personnel cost.

City Council 25 – 23 5/16/2023
City of Santa Ana RFP 18-049
Page A1-5

6. Include percent breakdown availability for each of the classifications The estimated construction duration stated above is for the purpose of cost estimate only.

The length of time requiring Consultant’s services will be dependent on the construction progress. For services under this category, the Consultant shall be paid according to hourly rates set forth herewith and the actual hours of service. b. Estimated reimbursable Expenses:

1. Costs of supplies and materials (itemized).

2. Travel - Transportation and per diem or subsistence listed separately, if any.

3. Any other direct charges.

4. Total estimated reimbursable expenses.

For services under this category, the Consultant shall be paid according to the rates set forth herewith and the actual reimbursable expenses.
c. Subtotal of a and b.
[II] Contingency services for each month after the original construction contract time:

Services under this category will be provided when requested by the City, and the Consultant shall be paid according to hourly rates set forth herewith and the actual hours of service.

For the purpose of comparison, each proposer shall use the same number of hours: 500 hours for the Project Manager, the Inspector and the Contract Administrator. The subtotal of this category shall be calculated as follows:

Proposed
Hourly Rate Hours Total
Project Manager $ /Hr. 500 $
Inspector $ /Hr. 500 $
Contract Administrator $ /Hr. 500 $
City Council 25 – 24 5/16/2023
City of Santa Ana RFP 18-029
Appendix
ATTACHMENT 2

STANDARD AGREEMENT
City Council 25 – 25 5/16/2023
DRAFT

CONSULTANT AGREEMENT

CITY OF SANTA ANA
rev. 09/20/2017 Page 1 of 8
THIS AGREEMENT is made and entered into this [##] day of [Month], 20[##] by and between [Consultant Company Name] (“Consultant”), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California, (“City”).

RECITALS
A. On [Month] [##], 20[##], the City issued Request for Proposal No. [##-###] (“RFP”), by which it sought a consultant to [briefly describe the expertise sought].

B. Consultant submitted a responsive proposal that was selected by the City. Consultant represents that it is able and willing to provide the services described in the scope of work that was included in the RFP.

C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field.

NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows:

1. SCOPE OF SERVICES
Consultant shall perform during the term of this Agreement, the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the services described and set forth in Scope of Services - Exhibit A, attached hereto and incorporated by reference.

2. COMPENSATION
a. City agrees to pay, and Consultant agrees to accept as total payment for its services for City, the rates and charges identified in Compensation - Exhibit B. The total amount to be expended under this Agreement shall not exceed [One Million Two Hundred ThirtyFour Thousand Five Hundred Sixty-Seven Dollars and Eighty-Nine Cents ($1,234,567.89)] during the term of this Agreement, including and extension periods exercised under Section 3.
b. Payment by City shall be made within 45 days (forty-five) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures.

Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City.

3. TERM
This Agreement shall commence on [Month ##, 20##] -OR- [the date first written above] and terminate on [Month] [##], 20[##], unless terminated earlier in accordance with Section 16, below. The term of this Agreement may be extended for [number #-year] period upon a writing executed by the City Manager and City Attorney.

City Council 25 – 26 5/16/2023
DRAFT

4. PREVAILING WAGES
Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the services being performed are part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

5. INDEPENDENT CONTRACTOR
Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services.

Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes.

6. OWNERSHIP OF MATERIALS
This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

7. INSURANCE
Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below:
a. Commercial General Liability Insurance. Consultant shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Consultant’s operations in the performance of this Agreement, including, without City Council 25 – 27 5/16/2023
DRAFT

limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles.
c. Worker’s Compensation Insurance. In accordance with the provisions of Section 3700 of the Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker’s compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Consultant agrees to obtain and maintain any employer’s liability insurance with limits not less than $1,000,000 per accident.
d. If Consultant is or employs a licensed professional such as an architect or engineer:

Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Consultant pursuant to this section:
(i) Consultant shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement.
(ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City.
(iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City.
(iv) Consultant shall supply City with a fully executed additional insured endorsement.
f. If Consultant fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City’s election, to forthwith terminate this Agreement. Such termination shall not affect Consultant’s right to be paid for its time and materials expended prior to notification of termination.

Consultant waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City.

City Council 25 – 28 5/16/2023
DRAFT

8. INDEMNIFICATION
Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Consultant, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Consultant’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

9. INTELLECTUAL PROPERTY INDEMNIFICATION
Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States’ letters patent, trademark, or copyright infringement, including costs, contained in the work product or documents provided by Consultant to the City pursuant to this Agreement.

10. RECORDS
Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable.

Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours.

Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement.

11. CONFIDENTIALITY
If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. “Confidential Information” shall include all nonpublic information. Confidential City Council 25 – 29 5/16/2023
DRAFT

information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City.

12. CONFLICT OF INTEREST CLAUSE
Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services. Conflict may be further specified in Certifications - Exhibit C, attached hereto and incorporated in this Agreement by reference.

13. DISCRIMINATION
Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations and as further specified in Certifications - Exhibit C, attached hereto and incorporated in this Agreement by reference.

14. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and Consultant, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Consultant. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein.

15. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City’s ability to have any of the services which are the subject to this Agreement performed by City personnel or by other consultants retained by City.

City Council 25 – 30 5/16/2023
DRAFT

16. TERMINATION
This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions:
a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product(s) completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement.

17. WAIVER
No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies.

18. JURISDICTION - VENUE
This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement.

19. PROFESSIONAL LICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement.

20. MISCELLANEOUS PROVISIONS
a. Additional provisions, if any, are identified in Additional Provisions - Exhibit D, attached hereto and incorporated into this Agreement by reference. b. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney’s fees, for any City Council 25 – 31 5/16/2023
DRAFT

injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn.
c. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement.

21. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons:

To CITY:

Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702
Fax: (714) 647-6956
With courtesy copies to:

Executive Director, Public Works Agency
City of Santa Ana
20 Civic Center Plaza (M-21)
P.O. Box 1988
Santa Ana, CA 92702
Fax: (714) 647-5635
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, CA 92702
Fax: (714) 647-6515
To CONSULTANT:

First Last
Title
Consultant Company Name
Address
City, State Zip
Fax: (###) ###-####
A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded.

City Council 25 – 32 5/16/2023
DRAFT

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written.

ATTEST: CITY OF SANTA ANA
MARIA D. HUIZAR RAUL GODINEZ II
Clerk of the Council City Manager
APPROVED AS TO FORM:

SONIA R. CARVALHO CONSULTANT:

City Attorney [Consultant Company Name]
By:

JOHN FUNK [NAME]
Assistant City Attorney [Title]
Tax ID# [##-#######]
RECOMMENDED FOR APPROVAL:

EDWIN “WILLIAM” GALVEZ
Acting Executive Director
Public Works Agency
City Council 25 – 33 5/16/2023
DRAFT

EXHIBIT A

SCOPE OF SERVICES
City Council 25 – 34 5/16/2023
DRAFT

EXHIBIT B

COMPENSATION
Fee Proposal including hourly rates
City Council 25 – 35 5/16/2023
DRAFT

EXHIBIT C

CERTIFICATIONS
City Council 25 – 36 5/16/2023
DRAFT

EXHIBIT D

ADDITIONAL PROVISIONS
City Council 25 – 37 5/16/2023
City of Santa Ana RFP 18-029
Appendix
ATTACHMENT 3

CERTIFICATIONS
City Council 25 – 38 5/16/2023
City of Santa Ana RFP 18-029

NON-COLLUSION AFFIDAVIT
(Title 23 United States Code Section 112 and Public Contract Code Section 7106) In conformance with Title 23 United States Code Section 112 and Public Contract Code 7106 the BIDDER declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the BIDDER has not directly or indirectly induced or solicited any other BIDDER to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any BIDDER or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the BIDDER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the BIDDER or any other BIDDER, or to fix any overhead, profit, or cost element of the bid price, or of that of any other BIDDER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the BIDDER has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid.

Note: The above Non-collusion Affidavit is part of the Proposal. BIDDERS are cautioned that making a false certification may subject the certifier to criminal prosecution.

Signed
State of California
County of __________
Subscribed and sworn to (or affirmed) before me on this _____ day of _______, 20__, by _______________________, proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me
Notary Public Signature Notary Public Seal
City Council 25 – 39 5/16/2023
City of Santa Ana RFP 18-029

NON-LOBBYING CERTIFICATION
The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities," in conformance with its instructions.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such subrecipients shall certify and disclose accordingly.

Signed:

Title:

Firm:

Date:

City Council 25 – 40 5/16/2023

CITY OF SANTA ANA
RFP NO.: 18-029

STRUCTURAL ENGINEERING SERVICES

NON-DISCRIMINATION CERTIFICATE
The undersigned contractor or corporate officer, during the performance of this contract, certifies as follows:

1. The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.

2. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin.

3. The Contractor shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers’ representatives of the Contractor’s commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

4. The Contractor shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

5. The Contractor shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders.

6. In the event of the Contractor’s non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law.

City Council 25 – 41 5/16/2023

CITY OF SANTA ANA
RFP NO.: 18-029

STRUCTURAL ENGINEERING SERVICES

7. The Contractor shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the Contractor may request that the United States enter into such litigation to protect the interests of the United States.

8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as amended, no discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any contractor of public works violating this Section is subject to all the penalties imposed for a violation of the Chapter.

Signed:

Title:

Firm:

Date:

City Council 25 – 42 5/16/2023
EXHIBIT 4
City Council 25 – 43 5/16/2023
City Council 25 – 44 5/16/2023
City Council 25 – 45 5/16/2023
City Council 25 – 46 5/16/2023
City Council 25 – 47 5/16/2023
City Council 25 – 48 5/16/2023
City Council 25 – 49 5/16/2023
City Council 25 – 50 5/16/2023
City Council 25 – 51 5/16/2023
City Council 25 – 52 5/16/2023
City Council 25 – 53 5/16/2023
City Council 25 – 54 5/16/2023
City Council 25 – 55 5/16/2023
City Council 25 – 56 5/16/2023
City Council 25 – 57 5/16/2023
City Council 25 – 58 5/16/2023
City Council 25 – 59 5/16/2023
City Council 25 – 60 5/16/2023
City Council 25 – 61 5/16/2023
City Council 25 – 62 5/16/2023
City Council 25 – 63 5/16/2023
City Council 25 – 64 5/16/2023
City Council 25 – 65 5/16/2023
City Council 25 – 66 5/16/2023
City Council 25 – 67 5/16/2023
City Council 25 – 68 5/16/2023
City Council 25 – 69 5/16/2023
City Council 25 – 70 5/16/2023
City Council 25 – 71 5/16/2023
City Council 25 – 72 5/16/2023
City Council 25 – 73 5/16/2023
City Council 25 – 74 5/16/2023
City Council 25 – 75 5/16/2023
City Council 25 – 76 5/16/2023
City Council 25 – 77 5/16/2023
City Council 25 – 78 5/16/2023
City Council 25 – 79 5/16/2023
City Council 25 – 80 5/16/2023
City Council 25 – 81 5/16/2023
City Council 25 – 82 5/16/2023
City Council 25 – 83 5/16/2023
City Council 25 – 84 5/16/2023
City Council 25 – 85 5/16/2023
City Council 25 – 86 5/16/2023
City Council 25 – 87 5/16/2023
City Council 25 – 88 5/16/2023
City Council 25 – 89 5/16/2023
City Council 25 – 90 5/16/2023
City Council 25 – 91 5/16/2023
City Council 25 – 92 5/16/2023
City Council 25 – 93 5/16/2023
City Council 25 – 94 5/16/2023
City Council 25 – 95 5/16/2023
City Council 25 – 96 5/16/2023
City Council 25 – 97 5/16/2023
City Council 25 – 98 5/16/2023
City Council 25 – 99 5/16/2023
City Council 25 – 100 5/16/2023
City Council 25 – 101 5/16/2023
City Council 25 – 102 5/16/2023
City Council 25 – 103 5/16/2023
City Council 25 – 104 5/16/2023
City Council 25 – 105 5/16/2023
City Council 25 – 106 5/16/2023
City Council 25 – 107 5/16/2023
CITY OF SANTA ANA FY 22/23CIP

CAPITAL IMPROVEMENT PROJECT WORKSHEET
PROJECT DESCRIPTION:

Reconstruct existing sewer lift station.

PROJECT NEED:

The existing wet well is too shallow, resulting in surcharging of incoming sewer mains. This project is required to prevent sewer mains from plugging and to prevent spills.

PROJECT TITLE:

Segerstrom (San Lorenzo) Sewer
Lift Station Reconstruction
PROJECT CATEGORY:

Utility/Drainage/Lighting
Improvements
Municipal Facilities

LOCATION MAP
AGENCY: DIVISION: CONTACT: DATE:

Public Works Water Resources Armando Fernandez, Senior Civil Engineer 16-May-2023 PROJECT COSTS FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 Construction 489,343 - - - - - -
TOTAL 489,343 - - - - - -
SOURCE OF FUNDS FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29

SEWER CONNECTION

PROJECTS
489,343 - - - - - -
TOTAL 489,343 - - - - - -
EXHIBIT 5
City Council 25 – 108 5/16/2023
Public Works Agency
www.santa-ana.org/public-works
Item # 26
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 16, 2023
TOPIC: Appropriation Adjustment for State Revolving Fund Loan

AGENDA TITLE
Approve Appropriation Adjustment Accepting Drinking Water State Revolving Fund Loan Funds for the Automated Metering Infrastructure Project in the Amount of $10,117,365 (Non-General Fund)

RECOMMENDED ACTION
Approve an appropriation adjustment accepting California State Water Resources Control Board’s Drinking Water State Revolving Fund loan funds in the amount of $10,117,365 into the Acquisition & Construction, Water Utility Water Division Capital Expense, Financing Proceeds/Reserve Appropriation revenue accounts and appropriate the same amount to the Acquisition & Construction, Water Utility Capital Projects, Water Capital Project/Reserve Appropriation expenditure accounts for current and future year expenditures. (Requires five affirmative votes)

DISCUSSION
The Public Works Agency’s Water Resources Division oversees and maintains the daily operations of the City’s water and sanitary sewer systems. The water system is composed of approximately 480 miles of water main, 21 groundwater wells, seven pump stations, 10 reservoirs with a storage capacity of 49 million gallons, four pressure regulating stations, and seven connection points to the Metropolitan Water District. The system has an average daily demand of 30 million gallons from its roughly 45,150 metered service connections.

On February 7, 2023, the City Council approved a Construction Installment Sale Agreement (Exhibit 1) with the California State Water Resources Control Board through their Drinking Water State Revolving Fund (SRF) loan program to help fund the City’s Automated Metering Infrastructure (AMI) Project. Approval of the appropriation adjustment accepts the SRF loan funds into the Acquisition & Construction, Water Utility Water Division Capital Expense, Financing Proceeds/Reserve Appropriation revenue accounts and appropriates the funds to the Acquisition & Construction, Water Utility Capital Projects, Water Capital Project/Reserve Appropriation expenditure accounts.

City Council 26 – 1 5/16/2023
Appropriation Adjustment for AMI SRF Loan
May 16, 2023

FISCAL IMPACT
Approval of the requested appropriation adjustment will accept $10,117,365 in State Revolving Fund funds into the Acquisition & Construction, Water Utility Water Division Capital Expense, Financing Proceeds revenue account (No. 06617002-59301) for current year expenditures, and Acquisition & Construction, Water Utility Water Division Capital Expense, Reserve Appropriation revenue account (No. 06617002-59011) for future fiscal year expenditures, and appropriates the same amount into the Acquisition & Construction, Water Utility Capital Projects, Water Capital Project expenditure account (No. 06617647-66301) for current year expenditures and Acquisition & Construction, Water Utility Capital Projects, Reserve Appropriation expenditure account (No. 06617647-69011) for future year expenditures.

Below is a breakdown of expected expenditures for the current and upcoming fiscal year.

Fiscal
Year
Accounting Unit
- Account #
Fund
Description
Accounting Unit,
Account Description Amount
2022-23 06617647-66301 Acquisition &
Construction
Water Utility Capital
Project, Water Capital
Project
$1,000,000
2023-24 06617647-69011 Acquisition &
Construction
Water Utility Capital
Project, Reserve
Appropriation
$9,117,365
Total: $10,117,365

EXHIBIT(S)

1. Construction Installment Sale Agreement
Submitted By: Nabil Saba, Executive Director of Public Works Approved By: Kristine Ridge, City Manager
City Council 26 – 2 5/16/2023

DRINKING WATER CONSTRUCTION LOAN

CITY OF SANTA ANA
AND

CALIFORNIA STATE WATER RESOURCES CONTROL BOARD

CONSTRUCTION

INSTALLMENT SALE AGREEMENT
PROJECT NO. 3010038-002C

AUTOMATED METERING INFRASTRUCTURE
AGREEMENT NO. D2202006
PROJECT FUNDING AMOUNT: $10,117,365.00
ESTIMATED REASONABLE PROJECT COST: $22,208,325.00
ELIGIBLE WORK START DATE: JUNE 1, 2019
ELIGIBLE CONSTRUCTION START DATE: SEPTEMBER 9, 2022
COMPLETION OF CONSTRUCTION DATE: JUNE 30, 2025
FINAL REIMBURSEMENT REQUEST DATE: DECEMBER 30, 2025
FINAL PAYMENT DATE: JULY 1, 2045
RECORDS RETENTION END DATE: JUNE 30, 2045
City Council 26 – 3 5/16/2023

THIS PAGE INTENTIONALLY LEFT BLANK
City Council 26 – 4 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C
Page i of 49
i

TABLE OF CONTENTS
AGREEMENT..........................................................................................................................................1

1. AUTHORITY.....................................................................................................................................1

2. INTENTION......................................................................................................................................1

3. AGREEMENT, TERM, DOCUMENTS INCORPORATED BY REFERENCE......................................1

4. PARTY CONTACTS.........................................................................................................................2

5. DEFINITIONS...................................................................................................................................3 EXHIBIT A – SCOPE OF WORK...........................................................................................................10 A.1. PROJECT DESCRIPTION, USEFUL LIFE, AND SCOPE OF WORK....................................... 10 A.2. STANDARD PROJECT REQUIREMENTS..................................................................................10 A.2.1 Acknowledgements. .......................................................................................................................... 10 A.2.2 Reports.............................................................................................................................................. 10 A.2.2.1 Progress Reports........................................................................................................................ 10 A.2.2.2 Project Completion Report......................................................................................................... 11 A.2.2.3 As Needed Reports. ................................................................................................................... 11 A.2.2.4 [Reserved]................................................................................................................................. 11 A.2.2.5 DBE Reports for SRF Projects. .................................................................................................. 11 A.2.3 Signage. ............................................................................................................................................ 11 A.2.4 Commencement of Operations........................................................................................................... 12 A.3 DATES & DELIVERABLES. ........................................................................................................12 A.4 SCHEDULE. ...............................................................................................................................12 EXHIBIT B – FUNDING TERMS............................................................................................................14 B.1. FUNDING AMOUNTS AND REIMBURSEMENTS ...................................................................14 B.1.1 Funding Contingency and Other Sources............................................................................................ 14 B.1.2 Estimated Reasonable Cost................................................................................................................ 14 B.1.3 Project Funding Amount.................................................................................................................... 14 B.1.4 [Reserved]......................................................................................................................................... 14 B. 1.5 Budget Costs. .................................................................................................................................... 14 B.1.6 Contingent Disbursement................................................................................................................... 15 B.1.7 Reimbursement Procedure. ................................................................................................................ 15 B.1.8 Withholding of Disbursements........................................................................................................... 16 B.1.9 Fraud and Misuse of Public Funds; Enforcement................................................................................ 17 B.2 RECIPIENT’S PAYMENT OBLIGATION, PLEDGE, AND RESERVE........................................... 17 B.2.1 Project Costs. .................................................................................................................................... 17 B.2.2 Estimated Principal Payment Due. ..................................................................................................... 18 B.2.3 Interest Rate and In-Lieu of Interest Charges...................................................................................... 18 B.2.4 [Reserved]......................................................................................................................................... 18 B.2.5 Obligation Absolute........................................................................................................................... 18 City Council 26 – 5 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C
Page ii of 49
ii
B.2.6 Payment Timing. ............................................................................................................................... 18 B.2.7 Pledged Revenues.............................................................................................................................. 19 B.2.7.1 Establishment of Enterprise Fund and Reserve Fund....................................................................... 19 B.2.7.2 Pledge of Net Revenues, Enterprise Fund, and Reserve Fund.......................................................... 19 B.2.7.3 Application and Purpose of the Enterprise Fund. ............................................................................ 19 B.2.8 No Prepayment.................................................................................................................................. 20 B.2.9 Reserve Fund. ................................................................................................................................... 20 B.3 RATES, FEES AND CHARGES. .................................................................................................20 B.4 ADDITIONAL DEBT. ...................................................................................................................20 B.5 NO LIENS...................................................................................................................................21 EXHIBIT C – GENERAL & PROGRAMMATIC TERMS & CONDITIONS................................................22 C.1 REPRESENTATIONS & WARRANTIES......................................................................................22 C.1.1 Application and General Recipient Commitments. ............................................................................. 22 C.1.2 Authorization and Validity................................................................................................................. 22 C.1.3 No Violations. ................................................................................................................................... 22 C.1.4 No Litigation..................................................................................................................................... 22 C.1.5 Property Rights and Water Rights. ..................................................................................................... 22 C.1.6 Solvency and Insurance. .................................................................................................................... 23 C.1.7 Legal Status and Eligibility................................................................................................................ 23 C.1.8 Financial Statements and Continuing Disclosure. ............................................................................... 23 C.1.9 System Obligations............................................................................................................................ 23 C.1.10 No Other Material Debt. .................................................................................................................... 23 C.1.11 Compliance with State Water Board Funding Agreements.................................................................. 23 C.2 DEFAULTS AND REMEDIES......................................................................................................23 C.2.1 Return of Funds; Acceleration; and Additional Payments. .................................................................. 24 C.2.3 Administrative remedies. ................................................................................................................... 24 C.2.4 Judicial remedies............................................................................................................................... 24 C.2.5 Termination....................................................................................................................................... 24 C.2.6 Damages for Breach of Tax-Exempt Status. ....................................................................................... 25 C.2.7 Damages for Breach of Federal Conditions. ....................................................................................... 25 C.2.8 Remedies and Limitations.................................................................................................................. 25 C.2.9 Non-Waiver. ..................................................................................................................................... 25 C.2.10 Status Quo......................................................................................................................................... 25 C.3 STANDARD CONDITIONS .............................................................................................................25 C.3.1 Access, Inspection, and Public Records.............................................................................................. 25 C.3.2 Accounting and Auditing Standards; Financial Management Systems; Records Retention................... 26 C.3.3 Amendment....................................................................................................................................... 27 C.3.4 Assignability. .................................................................................................................................... 27 C.3.5 Audit................................................................................................................................................. 27 C.3.6 Bonding. ........................................................................................................................................... 27 C.3.7 Competitive Bidding ......................................................................................................................... 27 C.3.8 Compliance with Applicable Laws, Rules, and Requirements............................................................. 27 C.3.9 Computer Software............................................................................................................................ 27 C.3.10 Conflict of Interest............................................................................................................................. 28 C.3.11 Continuous Use of Project; No Lease, Sale, Transfer of Ownership, or Disposal of Project. ................ 28 C.3.12 Data Management.............................................................................................................................. 28 C.3.13 Disputes. ........................................................................................................................................... 28 C.3.14 [Reserved]......................................................................................................................................... 28 City Council 26 – 6 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C
Page iii of 49
iii
C 3.15. Environmental Clearance...................................................................................................................... 28 C.3.16 Governing Law.................................................................................................................................. 29 C.3.17 Income Restrictions........................................................................................................................... 29 C.3.18 Indemnification and State Reviews. ................................................................................................... 29 C.3.19 Independent Actor. ............................................................................................................................ 30 C.3.20 Integration......................................................................................................................................... 30 C.3.21 Leveraging Covenants. ...................................................................................................................... 30 C.3.22 No Discrimination. ............................................................................................................................ 30 C.3.23 No Third Party Rights........................................................................................................................ 31 C.3.24 No Obligation of the State. ................................................................................................................ 31 C.3.25 Notice. .............................................................................................................................................. 31 C.3.26 Operation and Maintenance; Insurance............................................................................................... 33 C.3.27 Permits, Subcontracting, and Remedies.............................................................................................. 34 C.3.28 Professionals. .................................................................................................................................... 34 C.3.29 Prevailing Wages............................................................................................................................... 34 C.3.30 Public Funding. ................................................................................................................................. 35 C.3.31 Recipient’s Responsibility for Work. ................................................................................................. 35 C.3.32 Related Litigation.............................................................................................................................. 35 C.3.33 Rights in Data.................................................................................................................................... 35 C.3.34 State Water Board Action; Costs and Attorney Fees. .......................................................................... 35 C.3.35 Timeliness......................................................................................................................................... 35 C.3.36 Unenforceable Provision.................................................................................................................... 36 C.3.37 Venue................................................................................................................................................ 36 C.3.38 Waiver and Rights of the State Water Board. ..................................................................................... 36 C.4 MISCELLANEOUS STATE AND FEDERAL REQUIREMENTS .......................................................36 C.4.1 [Reserved]......................................................................................................................................... 36 C.4.2 State Cross-Cutters. ........................................................................................................................... 36 C.4.3 Federal Requirements and Cross-Cutters for SRF Funding. ................................................................ 37 EXHIBIT D – SPECIAL CONDITIONS ...................................................................................................43 EXHIBIT E – PAYMENT SCHEDULE ....................................................................................................44 EXHIBIT F – TAX CERTIFICATE...........................................................................................................45 F.1 Purpose. .....................................................................................................................................45 F.2 Tax Covenant..............................................................................................................................45 F.3 Governmental Unit. .....................................................................................................................45 F.4 Financing of a Capital Project......................................................................................................45 F.5 Ownership and Operation of Project............................................................................................45 F.6 Temporary Period. ......................................................................................................................45 F.7 Working Capital...........................................................................................................................45 F.8 Expenditure of Proceeds. ............................................................................................................46 F.9 Private Use and Private Payments. .............................................................................................46 F.10 No Sale, Lease or Private Operation of the Project. .................................................................46 City Council 26 – 7 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C
Page iv of 49
iv
F.11 No Disproportionate or Unrelated Use......................................................................................46 F.12 Management and Service Contracts. .......................................................................................47 F.13 No Disposition of Financed Property. .......................................................................................47 F.14 Useful Life of Project................................................................................................................47 F.15 Payments. ...............................................................................................................................47 F.16 No Other Replacement Proceeds.............................................................................................47 F.17 No Sinking or Pledged Fund. ...................................................................................................47 F.18 Reserve Amount......................................................................................................................48 F.19 Reimbursement Resolution......................................................................................................48 F.20 Reimbursement Expenditures..................................................................................................48 F.21 Change in Use of the Project. ..................................................................................................48 F.22 Rebate Obligations. .................................................................................................................48 F.23 No Federal Guarantee. ............................................................................................................48 F.24 Amendments. ..........................................................................................................................49 F.25 Reasonable Expectations. .......................................................................................................49 F.26 Assignment..............................................................................................................................49 City Council 26 – 8 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

DWSRF 18v2022

AGREEMENT

1. AUTHORITY.
(a) The State Water Resources Control Board (State Water Board) is authorized, and implements its authority, to provide financial assistance under this Agreement pursuant to Section 116760 et seq. of the Health and Safety Code, and Resolution No. 2022-0041.
(b) The Recipient is authorized to enter into this Installment Sale Agreement (Agreement) pursuant to Resolution No. 2019-026 dated May 7, 2019.

2. INTENTION.
(a) The Recipient desires to receive financial assistance for and undertake work required for the drinking water construction Project according to the terms and conditions set forth in this Agreement. (b) The State Water Board proposes to assist in providing financial assistance for eligible costs of the Project in the amount set forth in Exhibit B, according to the terms and conditions set forth in this Agreement, with the expectation that the Recipient shall repay all of the financial assistance to the State Water Board.
(c) The Recipient intends to evidence its obligation to submit Payments to the State Water Board and secure its obligation with Net Revenues of its water enterprise, as set forth in Exhibit B, according to the terms and conditions set forth in this Agreement.
(d) The Recipient intends to certify and evidence its compliance with the Tax Covenants set forth in Exhibit F.

3. AGREEMENT, TERM, DOCUMENTS INCORPORATED BY REFERENCE.

In consideration of the mutual representations, covenants and agreements herein set forth, the State Water Board and the Recipient, each binding itself, its successors and assigns, do mutually promise, covenant, and agree to the terms, provisions, and conditions of this Agreement. (a) The Recipient hereby sells to the State Water Board and the State Water Board hereby purchases from the Recipient the Project. Simultaneously therewith, the Recipient hereby purchases from the State Water Board, and the State Water Board hereby sells to the Recipient, the Project in accordance with the provisions of this Agreement. All right, title, and interest in the Project shall immediately vest in the Recipient on the date of execution and delivery of this Agreement by both parties without further action on the part of the Recipient or the State Water Board. (b) Subject to the satisfaction of any condition precedent to this Agreement, this Agreement shall become effective upon the signature of both the Recipient and the State Water Board. Conditions precedent are not limited to the following:
i. The Recipient must deliver to the Division a resolution authorizing this Agreement. ii. The Recipient must deliver an opinion of bond counsel and general counsel satisfactory to the State Water Board’s counsel dated on or after the date that the Recipient signs this Agreement.
(c) Upon execution, the term of the Agreement shall begin on the Eligible Work Start Date and extend through the Final Payment Date.

City Council 26 – 9 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

DWSRF 18v2022
(d) This Agreement includes the following exhibits and attachments thereto:
i. EXHIBIT A – SCOPE OF WORK
ii. EXHIBIT B – FUNDING TERMS
iii. EXHIBIT C – GENERAL & PROGRAMMATIC TERMS & CONDITIONS iv. EXHIBIT D – SPECIAL CONDITIONS
v. EXHIBIT E – PAYMENT SCHEDULE
vi. EXHIBIT F – TAX CERTIFICATE
(e) This Agreement includes the following documents incorporated by reference, as well as any documents incorporated by reference in Exhibit D:
i. the Final Plans & Specifications, dated September 22, 2021, which are the basis for the construction contract to be awarded by the Recipient;
ii. the Drinking Water System Permit No. 05-08-10P-001; iii. the Recipient’s Reimbursement Resolution No. 2019-027 dated May 7, 2019; iv. the Recipient’s Tax Questionnaire dated January 28, 2020. v. the Davis-Bacon requirements found at:
https://www.waterboards.ca.gov/water_issues/programs/grants_loans/srf/docs/2022 /2022-dwsrf-governmental-entities-public.pdf.
(f) This Agreement, and any amendments hereto, may be executed and delivered in any number of counterparts, each of which when delivered shall be deemed to be an original, but such counterparts shall together constitute one document. The parties may sign this Agreement, and any amendments hereto, either by an electronic signature using a method approved by the State Water Board or by a physical, handwritten signature. The parties mutually agree that an electronic signature using a method approved by the State Water Board is the same as a physical, handwritten signature for the purposes of validity, enforceability, and admissibility.

4. PARTY CONTACTS
State Water Board City of Santa Ana
Section: Division of Financial Assistance
Name: John Paul Blanco, Project Manager Name: Nabil Saba – Executive Director, Public Works of
COSA
Address: 1001 I Street, 16th Floor Address: 220 S. Daisy St.

City, State,
Zip:

Sacramento, CA 95814 City, State, Zip: Santa Ana, CA 92703 Phone: (916) 445-2495 Phone: (714) 647-3378
Fax: Fax:

Email: [email protected] Email: [email protected] The Recipient may change its contact upon written notice to the Division, which notice shall be accompanied by authorization from the Recipient’s Authorized Representative. The State Water Board will notify the Recipient of any changes to its contact.

While the foregoing are contacts for day-to-day communications regarding Project work, the Recipient shall provide official communications and events of Notice as set forth in Exhibit C to the Division’s Deputy Director.

City Council 26 – 10 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

DWSRF 18v2022

5. DEFINITIONS.

Unless otherwise specified, each capitalized term used in this Agreement has the following meaning:
“Additional Payments" means the reasonable extraordinary fees and expenses of the State Water Board, and of any assignee of the State Water Board's right, title, and interest in and to this Agreement, in connection with this Agreement, including all expenses and fees of accountants, trustees, staff, contractors, consultants, costs, insurance premiums and all other extraordinary costs reasonably incurred by the State Water Board or assignee of the State Water Board. "Allowance" means an amount based on a percentage of the accepted bid for an eligible project to help defray the planning, design, and construction engineering and administration costs of the Project. “Agreement” means this agreement, including all exhibits and attachments hereto. “Authority” shall refer to Santa Ana Financing Authority. "Authorized Representative" means the duly appointed representative of the Recipient as set forth in the certified original of the Recipient’s authorizing resolution that designates the authorized representative by title.
"Bank" means the California Infrastructure and Economic Development Bank. “Bond Funded Portion of the Project Funds” means any portion of the Project Funds which was or will be funded with Bond Proceeds.
“Bond Proceeds” means original proceeds, investment proceeds, and replacement proceeds of Bonds.

Bonds" means any series of bonds issued by the Bank, the interest on which is excluded from gross income for federal tax purposes, all or a portion of the proceeds of which have been, are, or will be applied by the State Water Board to fund all or any portion of the Project Costs or that are secured in whole or in part by Payments paid hereunder.
“Charge In Lieu of Interest” means any fee or charge in lieu of some or all of, but not to exceed, the interest that would otherwise be owed under this Agreement, as set forth in Exhibit E. "Code" as used in Exhibit F of this Agreement means the Internal Revenue Code of 1986, as amended, and any successor provisions and the regulations of the U.S. Department of the Treasury promulgated thereunder.
"Completion of Construction" means the date, as determined by the Division after consultation with the Recipient, that the work of building and erection of the Project is substantially complete, and is identified in Exhibit A of this Agreement.
“Cover Page” means the front page of this Agreement.
“Days” means calendar days unless otherwise expressly indicated. “Debt Service” means, as of any date, with respect to outstanding System Obligations and, in the case of the additional debt tests in Exhibit B of this Agreement, any System Obligations that are proposed to be outstanding, the aggregate amount of principal and interest scheduled to become due (either at maturity City Council 26 – 11 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

DWSRF 18v2022
or by mandatory redemption), together with any Charge In Lieu of Interest on this Obligation or other System Obligations to the State Water Board, calculated with the following assumptions:
a. Principal payments (unless a different subdivision of this definition applies for purposes of determining principal maturities or amortization) are made in accordance with any amortization schedule published for such principal, including any minimum sinking fund payments; b. Interest on a variable rate System Obligation that is not subject to a swap agreement and that is issued or will be issued as a tax-exempt obligation under federal law, is the average of the SIFMA Municipal Swap Index, or its successor index, during the 24 months preceding the date of such calculation;
c. Interest on a variable rate System Obligation that is not subject to a swap agreement and that is issued or will be issued as a taxable obligation under federal law, is the average of SOFR, or its successor index, during the 24 months preceding the date of such calculation; d. Interest on a variable rate System Obligation that is subject to a swap agreement is the fixed swap rate or cap strike rate, as appropriate, if the variable rate has been swapped to a fixed rate or capped pursuant to an interest rate cap agreement or similar agreement; e. Interest on a fixed rate System Obligation that is subject to a swap agreement such that all or a portion of the interest has been swapped to a variable rate shall be treated as variable rate debt under subdivisions (b) or (c) of this definition of Debt Service; f. Payments of principal and interest on a System Obligation are excluded from the calculation of Debt Service to the extent such payments are to be paid from amounts then currently on deposit with a trustee or other fiduciary and restricted for the defeasance of such System Obligations; g. If 25% or more of the principal of a System Obligation is not due until its final stated maturity, then principal and interest on that System Obligation may be projected to amortize over the lesser of 30 years or the Useful Life of the financed asset, and interest may be calculated according to subdivisions (b)-(e) of this definition of Debt Service, as appropriate.
“Deputy Director” means the Deputy Director of the Division. “District Office” means District Office of the Division of Drinking Water of the State Water Board. "Division" means the Division of Financial Assistance of the State Water Board or any other segment of the State Water Board authorized to administer this Agreement. “Division of Drinking Water” means the Division of Drinking Water of the State Water Board. “Eligible Construction Start Date” means the date set forth on the Cover Page of this Agreement, establishing the date on or after which construction costs may be incurred and eligible for reimbursement hereunder.
“Eligible Work Start Date” means the date set forth on the Cover Page of this Agreement, establishing the date on or after which any non-construction costs may be incurred and eligible for reimbursement hereunder.
“Enterprise Fund” means the enterprise fund of the Recipient in which Revenues are deposited. “Event of Default” means the occurrence of any of the following events:

City Council 26 – 12 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

DWSRF 18v2022
a) Failure by the Recipient to make any payment required to be paid pursuant to this Agreement, including Payments;
b) A representation or warranty made by or on behalf of the Recipient in this Agreement or in any document furnished by or on behalf of the Recipient to the State Water Board pursuant to this Agreement shall prove to have been inaccurate, misleading or incomplete in any material respect; c) A material adverse change in the condition of the Recipient, the Revenues, or the System, which the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement.
d) Failure by the Recipient to comply with the additional debt test or reserve fund requirement, if any, in Exhibit B or Exhibit D of this Agreement;
e) Failure to operate the System or the Project without the Division’s approval; f) Failure by the Recipient to observe and perform any covenant, condition, or provision in this Agreement, which failure shall continue for a period of time, to be determined by the Division; g) The occurrence of a material breach or event of default under any System Obligation that results in the acceleration of principal or interest or otherwise requires immediate prepayment, repurchase or redemption;
h) Initiation of proceedings seeking arrangement, reorganization, or any other relief under any applicable bankruptcy, insolvency, or other similar law; the appointment of or taking possession of the Recipient’s property by a receiver, liquidator, assignee, trustee, custodian, conservator, or similar official; the Recipient’s entering into a general assignment for the benefit of creditors; the initiation of resolutions or proceedings to terminate the Recipient’s existence, or any action in furtherance of any of the foregoing; i) A determination pursuant to Gov. Code section 11137 that the Recipient has violated any provision in Article 9.5 of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code; j) Loss of the Recipient’s rights, licenses, permits, or privileges necessary for the operation of the System or the Project, or the occurrence of any material restraint on the Recipient’s enterprise by a government agency or court order.
“Final Payment Date” is the date by which all principal and accrued interest due under this Agreement is to be paid in full to the State Water Board and is specified on the Cover Page of this Agreement. “Final Reimbursement Request Date” means the date set forth as such on the Cover Page of this Agreement, after which date, no further Project Funds disbursements may be requested. "Fiscal Year" means the period of twelve (12) months terminating on June 30 of any year, or any other annual period selected and designated by the Recipient as its Fiscal Year in accordance with applicable law.
"Force Account" means the use of the Recipient's own employees, equipment, or resources for the Project.
“GAAP” means generally accepted accounting principles, the uniform accounting and reporting procedures set forth in publications of the American Institute of Certified Public Accountants or its successor, or by any other generally accepted authority on such procedures, and includes, as applicable, the standards set forth by the Governmental Accounting Standards Board or its successor, or the Uniform System of Accounts, as adopted by the California Public Utilities Commission for water utilities. "Initiation of Construction" means the date that notice to proceed with work is issued for the Project, or, if notice to proceed is not required, the date of commencement of building and erection of the Project. “Listed Event” means, so long as the Recipient has outstanding any System Obligation subject to Rule 15c2-12, any of the events required to be reported with respect to such System Obligation pursuant to Rule 15c2-12(b)(5).

City Council 26 – 13 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

DWSRF 18v2022
“Material Obligation” means an obligation of the Recipient that is material to this transaction, including System Obligations.
“Maximum Annual Debt Service” means the maximum amount of Debt Service due on System Obligations in a Fiscal Year during the period commencing with the Fiscal Year for which such calculation is made and within the next five years in which Debt Service for any System Obligations will become due. "Net Revenues" means, for any Fiscal Year, all Revenues received by the Recipient less the Operations and Maintenance Costs for such Fiscal Year.
"Obligation" means the obligation of the Recipient to make Payments (including Additional Payments) as provided herein, as evidenced by the execution of this Agreement, proceeds of such obligations being used to fund the Project as specified in the Project Description in Exhibit A and Exhibit B and in the documents thereby incorporated by reference.
"Operations and Maintenance Costs" means the reasonable and necessary costs paid or incurred by the Recipient for maintaining and operating the System, determined in accordance with GAAP, including all reasonable expenses of management and repair and all other expenses necessary to maintain and preserve the System in good repair and working order, and including all reasonable and necessary administrative costs of the Recipient that are charged directly or apportioned to the operation of the System, such as salaries and wages of employees, overhead, taxes (if any), the cost of permits, licenses, and charges to operate the System and insurance premiums; but excluding, in all cases depreciation, replacement, and obsolescence charges or reserves therefor and amortization of intangibles. “Parity Obligation” means a debt obligation of the Recipient on parity with this Obligation. The Recipient’s Parity Obligations are these:
• The Installment Sale Agreement by and between the City of Santa Ana and the Santa Ana Financing Authority dated as of July 22, 2014 (Water Revenue Refunding Bonds, Series 2014) “Payment” means any payment due to the State Water Board from the Recipient pursuant to this Agreement.
"Policy" means the State Water Board's “Policy for Implementing the Drinking Water State Revolving Fund,” as amended from time to time, including the Intended Use Plan in effect as of the execution date of this Agreement.
“Project” means the Project financed by this Agreement as described in Exhibits A and B and in the documents incorporated by reference herein.
"Project Completion" means the date, as determined by the Division after consultation with the Recipient, that operation of the Project is initiated or is capable of being initiated, whichever comes first. "Project Costs" means the incurred costs of the Recipient which are eligible for financial assistance under this Agreement, which are allowable costs as defined under the Policy, and which are reasonable, necessary and allocable by the Recipient to the Project under GAAP, and may include capitalized interest.
“Project Funds” means all moneys disbursed to the Recipient by the State Water Board for eligible Project Costs pursuant to this Agreement.

City Council 26 – 14 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

DWSRF 18v2022
“Recipient” means the City of Santa Ana. In any provision of this Agreement referencing duties undertaken by the Authority on behalf of the Recipient, the term “Recipient” shall also refer to the Authority.
“Records Retention End Date” means the last date that the Recipient is obligated to maintain records and is set forth on the Cover Page of this Agreement.
“Regional Water Quality Control Board” or “Regional Water Board” means the appropriate Regional Water Quality Control Board.
“Reimbursement Resolution” means the Recipient’s reimbursement resolution identified and incorporated by reference in this Agreement.
“Reserve Fund” means the reserve fund required pursuant to Exhibit B of this Agreement. "Revenues" means, for each Fiscal Year, all gross income and revenue received or receivable by the Recipient from the ownership or operation of the System, determined in accordance with GAAP, including all rates, fees, and charges (including connection fees and charges) as received by the Recipient for the services of the System, and all other income and revenue howsoever derived by the Recipient from the ownership or operation of the System or arising from the System, including all income from the deposit or investment of any money in the Enterprise Fund or any rate stabilization fund of the Recipient or held on the Recipient’s behalf, and any refundable deposits made to establish credit, and advances or contributions in aid of construction.
“Rule 15c2-12(b)(5)” means Rule 15c2-12(b)(5) promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended. “Senior Obligation” means a debt obligation of the Recipient that is senior to this Obligation. There are no Senior Obligations.
“SRF” means the Drinking Water State Revolving Fund.
“State” means State of California.
“State Water Board” means the State Water Resources Control Board. “Subordinate Obligation” means a debt obligation of the Recipient that is subordinate to this Obligation.

There are no Subordinate Obligations.
“System” means all drinking water collection, transport, treatment, storage, and delivery facilities, including land and easements thereof, owned by the Recipient, including the Project, and all other properties, structures, or works hereafter acquired and constructed by the Recipient and determined to be a part of the System, together with all additions, betterments, extensions, or improvements to such facilities, properties, structures, or works, or any part thereof hereafter acquired and constructed. “System Obligation” means any obligation of the Recipient payable from the Revenues, including but not limited to this Obligation, any Parity Obligation, any Subordinate Obligation, and such additional obligations as may hereafter be issued in accordance with the provisions of such obligations and this Agreement.
“Useful Life” means the economically useful life of the Project beginning at Completion of Construction and is set forth in Exhibit A.

City Council 26 – 15 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

DWSRF 18v2022
“Year” means calendar year unless otherwise expressly indicated.

City Council 26 – 16 5/16/2023
City Council 26 – 17 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit A
EXHIBIT A – SCOPE OF WORK
A.1. PROJECT DESCRIPTION, USEFUL LIFE, AND SCOPE OF WORK. (a) The Project is the project set forth on the Cover Page of this Agreement. (b) The Useful Life of this Project is at least 20 years. (c) Scope of Work.

The Recipient agrees to replace approximately 43,000 existing manual read water meters with new automated water meters.

A.2. STANDARD PROJECT REQUIREMENTS.

A.2.1 Acknowledgements.

The Recipient shall include the following acknowledgement in any document, written report, or brochure prepared in whole or in part pursuant to this Agreement:
“Funding for this project has been provided in full or in part through an agreement with the State Water Resources Control Board.

California’s Drinking Water State Revolving Fund is capitalized through a variety of funding sources, including grants from the United States Environmental Protection Agency and state bond proceeds.

The contents of this document do not necessarily reflect the views and policies of the foregoing, nor does mention of trade names or commercial products constitute endorsement or recommendation for use.” A.2.2 Reports
A.2.2.1 Progress Reports.
(a) The Recipient must provide a progress report to the Division each quarter, beginning no later than 90 days after execution of this Agreement.
(b) The Recipient must provide a progress report with each reimbursement request. Failure to provide a complete and accurate progress report may result in the withholding of Project Funds, as set forth in Exhibit B.
(c) A progress report must contain the following information:
i. A summary of progress to date including a description of progress since the last report, percent construction complete, percent contractor invoiced, and percent schedule elapsed;
ii. A description of compliance with environmental requirements; iii. A listing of change orders including amount, description of work, and change in contract amount and schedule; and
City Council 26 – 18 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit A
iv. Any problems encountered, proposed resolution, schedule for resolution, and status of previous problem resolutions.

A.2.2.2 Project Completion Report.
(a) The Recipient must submit a Project Completion Report to the Division with a copy to the appropriate Regional Water Board and District Office on or before the due date established by the Division and the Recipient at the time of final project inspection. The Project Completion Report must include the following:
i. Description of the Project,
ii. Description of the water quality problem the Project sought to address, iii. Discussion of the Project’s likelihood of successfully addressing that water quality problem in the future, and
iv. Summary of compliance with applicable environmental conditions. (b) If the Recipient fails to submit a timely Project Completion Report, the State Water Board may stop processing pending or future applications for new financial assistance, withhold disbursements under this Agreement or other agreements, and begin administrative proceedings.

A.2.2.3 As Needed Reports.

The Recipient must provide expeditiously, during the term of this Agreement, any reports, data, and information reasonably required by the Division, including but not limited to material necessary or appropriate for evaluation of the funding program or to fulfill any reporting requirements of the state or federal government.

A.2.2.4 [Reserved]
A.2.2.5 DBE Reports for SRF Projects.

The Recipient must report Disadvantaged Business Enterprise (DBE) utilization to the Division on the DBE Utilization Report, State Water Board Form DBE UR334. The Recipient must submit such reports to the Division annually within ten (10) calendar days following October 1 until such time as the "Notice of Completion" is issued. The Recipient must comply with 40 CFR § 33.301 and require its contractors and subcontractors on the Project to comply.

A.2.3 Signage.

The Recipient shall place a sign at least four feet tall by eight feet wide made of ¾ inch thick exterior grade plywood or other approved material in a prominent location on the Project site and shall maintain the sign in good condition for the duration of the construction period. The sign must include the following disclosure statement and color logos (available from the Division):
a.

City Council 26 – 19 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit A
b. “Funding for this Automated Meter Infrastructure project has been provided in full or in part by the Drinking Water State Revolving Fund through an agreement with the State Water Resources Control Board. California’s Drinking Water State Revolving Fund is capitalized through a variety of funding sources, including grants from the United States Environmental Protection Agency and state bond proceeds.”
b. The Project sign may include another agency's required promotional information so long as the above logos and disclosure statement are equally prominent on the sign. The sign shall be prepared in a professional manner.

A.2.4 Commencement of Operations.

Upon Completion of Construction of the Project, the Recipient must expeditiously initiate Project operations.

A.3 DATES & DELIVERABLES.
(a) Time is of the essence.
(b) The Recipient must expeditiously proceed with and complete construction of the Project. (c) The following dates are established as on the Cover Page of this Agreement:
i. Eligible Work Start Date
ii. Eligible Construction Start Date
iii. Completion of Construction Date
iv. Final Reimbursement Request Date
v. Records Retention End Date
vi. Final Payment Date
(d) The Recipient must award the prime construction contract timely. (e) The Recipient agrees to start construction no later than [DFA will insert date that is within 6 months after execution of this Agreement].
(f) The Recipient must deliver any request for extension of the Completion of Construction date no less than 90 days prior to the Completion of Construction date. (g) The undisbursed balance of this Agreement will be deobligated if the Recipient does not provide its final reimbursement request to the Division on or before the Final Reimbursement Request Date.

A.4 SCHEDULE.

Failure to provide items by the due dates indicated in the table below may constitute a material violation of this Agreement. The Project Manager may adjust the dates in the “Estimated Due Date” column of this table, but Critical Due Date adjustments will require an amendment to this Agreement. The Recipient must complete and submit all work in time to be approved by the Division prior to Project Completion. As applicable for specific submittals, the Recipient must plan adequate time to solicit, receive, and address comments prior to submitting the final submittal. The Recipient must submit the final reimbursement request prior to the Final Reimbursement Request Date set forth on the Cover Page.

City Council 26 – 20 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit A

ITEM DESCRIPTION OF SUBMITTAL CRITICAL

DUE DATE

ESTIMATED

DUE DATE

SCOPE OF WORK
1 CONSTRUCTION COMPLETION 06/30/2025 N/A

REPORTING
1 Progress Reports N/A Quarterly
2 50% Project Inspection and Certification N/A Upon 50% completion of
the Project
3 Final Project Inspection and Certification N/A Upon 100% completion of
the Project
4 Project Completion Report N/A 12/30/2025
5 As Needed Information and Reports N/A As Requested
by Division

BUDGET COSTS AND REIMBURSEMENT
1 First Reimbursement Request No later
than 90
days from
Agreement
Execution
Date
N/A
2 Final Budget Approval Package N/A 12/30/2022
3 Reimbursement Requests N/A Quarterly
4 Final Reimbursement Request 12/30/2025 N/A
City Council 26 – 21 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit B
EXHIBIT B – FUNDING TERMS
B.1. FUNDING AMOUNTS AND REIMBURSEMENTS
B.1.1 Funding Contingency and Other Sources.
(a) If this Agreement’s funding for any fiscal year expires due to reversion or is reduced, substantially delayed, or deleted by the Budget Act, by Executive Order, or by order or action of the Department of Finance, the State Water Board has the option to either cancel this Agreement with no liability accruing to the State Water Board, or offer an amendment to the Recipient to reflect the reduced amount. (b) If funding for Project Costs is made available to the Recipient from sources other than this Agreement, the Recipient must notify the Division. The Recipient may retain such funding up to an amount which equals the Recipient's share of Project Costs. To the extent allowed by requirements of other funding sources, excess funding must be remitted to the State Water Board to be applied to Payments due hereunder, if any.

B.1.2 Estimated Reasonable Cost.

The estimated reasonable cost of the total Project, including associated planning and design costs is twenty-two million two hundred eight thousand three hundred twenty-five dollars and no cents ($22,208,325.00).

B.1.3 Project Funding Amount.

Subject to the terms of this Agreement, the State Water Board agrees to provide Project Funds not to exceed the amount of the Project Funding Amount set forth on the Cover Page of this Agreement.

B.1.4 [Reserved]
B. 1.5 Budget Costs.
(a) Estimated budget costs are contained in the Summary Project Cost Table below:

LINE ITEM TOTAL

ESTIMATED
COST

PROJECT

FUNDING
AMOUNT
Construction $10,117,365 $10,117,365
Pre-Purchased Material / Equipment $0 $0
Purchase of Land / Easements $0 $0
Change Order Contingency $0 $0
Force Account $0 $0
Allowances (Soft Costs) $0 $0
City Council 26 – 22 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit B
Total $10,117,365 $10,117,365
The Division’s Final Budget Approval and related Form 259 and Form 260 will document a more detailed budget of eligible Project Costs and Project funding amounts.

Upon written request by the Recipient, the Division may adjust the line items of the Summary Project Cost Table at the time of Division’s Final Budget Approval. Upon written request by the Recipient, the Division may also adjust the line items of the Summary Project Cost Table as well as the detailed budget at the time of Recipient’s submittal of its final claim. Any line item adjustments to the Summary Project Cost Table that are due to a change in scope of work will require an Agreement amendment.

The sum of adjusted line items in both the Summary Project Cost Table and the detailed budget must not exceed the Project Funding Amount. The Division may also propose budget adjustments. (b) Under no circumstances may the sum of line items in the budget approved through the Final Budget Approval process exceed the Project Funding Amount. Any increase in the Project Funding Amount will require an Agreement amendment.

B.1.6 Contingent Disbursement.
(a) The State Water Board’s disbursement of funds hereunder is contingent on the Recipient’s compliance with the terms and conditions of this Agreement. (b) The State Water Board's obligation to disburse Project Funds is contingent upon the availability of sufficient funds to permit the disbursements provided for herein. If sufficient funds are not available for any reason, including but not limited to failure of the federal or State government to appropriate funds necessary for disbursement of Project Funds, the State Water Board shall not be obligated to make any disbursements to the Recipient under this Agreement. This provision shall be construed as a condition precedent to the obligation of the State Water Board to make any disbursements under this Agreement.

Nothing in this Agreement shall be construed to provide the Recipient with a right of priority for disbursement over any other entity. If any disbursements due the Recipient under this Agreement are deferred because sufficient funds are unavailable, it is the intention of the State Water Board that such disbursement will be made to the Recipient when sufficient funds do become available, but this intention is not binding.
(c) Construction costs and disbursements are not available until after the Division has approved the final budget form submitted by the Recipient
(d) No costs incurred prior to the Eligible Work Start Date are eligible for reimbursement. (e) Construction costs incurred prior to the Eligible Construction Start Date are not eligible for reimbursement.
(f) Failure to proceed according to the timelines set forth in this Agreement may require the Recipient to repay to the State Water Board all disbursed Project Funds. (g) The Recipient agrees to ensure that its final reimbursement request is received by the Division no later than the Final Reimbursement Request Date. If the final reimbursement request is not received timely, the undisbursed balance of this Agreement will be deobligated. (h) The Recipient is not entitled to interest earned on undisbursed funds.

B.1.7 Reimbursement Procedure.

City Council 26 – 23 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit B
Except as may be otherwise provided in this Agreement, disbursement of Project Funds will be made as follows:
(a) Upon execution and delivery of this Agreement by both parties, the Recipient may request immediate reimbursement of any eligible incurred planning and design allowance costs through submission to the State Water Board of the Reimbursement Request Form 260 and Form 261, or any amendment thereto, duly completed and executed.
(b) The Recipient must submit a reimbursement request for costs incurred prior to the date this Agreement is executed by the State Water Board no later than ninety (90) days after this Agreement is executed by the State Water Board. Late reimbursement requests may not be honored.
(c) The Recipient may request reimbursement of eligible construction and equipment costs consistent with budget amounts approved by the Division in the Final Budget Approval. (d) Additional Project Funds will be promptly disbursed to the Recipient upon receipt of reimbursement request Form 260 and Form 261, or any amendment thereto, duly completed and executed by the Recipient for incurred costs consistent with this Agreement, along with receipt of progress reports due under Exhibit A.
(e) The Recipient must not request reimbursement for any Project Cost until such cost has been incurred and is currently due and payable by the Recipient, although the actual payment of such cost by the Recipient is not required as a condition of reimbursement request. Supporting documentation (e.g., receipts) must be submitted with each reimbursement request. The amount requested for administration costs must include a calculation formula (i.e., hours or days worked times the hourly or daily rate = total amount claimed). Disbursement of Project Funds will be made only after receipt of a complete, adequately supported, properly documented, and accurately addressed reimbursement request. Reimbursement requests submitted without supporting documents may be wholly or partially withheld at the discretion of the Division. (f) The Recipient must spend Project Funds within 30 days of receipt. If the Recipient earns interest earned on Project Funds, it must report that interest immediately to the State Water Board. The State Water Board may deduct earned interest from future disbursements. (g) The Recipient shall not request a reimbursement unless that Project Cost is allowable, reasonable, and allocable.
(h) Notwithstanding any other provision of this Agreement, no disbursement shall be required at any time or in any manner which is in violation of or in conflict with federal or state laws, policies, or regulations.
(i) No work or travel outside the State of California is permitted under this Agreement unless the Division provides prior written authorization. Failure to comply with this restriction may result in termination this Agreement, pursuant to Exhibit C. Any reimbursement for necessary travel and per diem shall be at rates not to exceed those set by the California Department of Human Resources at http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. as of the date costs are incurred by the Recipient.

B.1.8 Withholding of Disbursements.

Notwithstanding any other provision of this Agreement, the State Water Board may withhold all or any portion of the Project Funds upon the occurrence of any of the following events:

City Council 26 – 24 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit B
(a) The Recipient’s failure to maintain reasonable progress on the Project as determined by the Division;
(b) Placement on the ballot or passage of an initiative or referendum to repeal or reduce the Recipient’s taxes, assessments, fees, or charges levied for operation of the System or payment of debt service on System Obligations;
(c) Commencement of litigation or a judicial or administrative proceeding related to the Project, System, or Revenues that the State Water Board determines may impair the timely satisfaction of Recipient’s obligations under this Agreement; (d) Any investigation by the State Water Board, District Attorney, California State Auditor, Bureau of State Audits, United States Environmental Protection Agency’s Office of Inspector General, the Internal Revenue Service, Securities and Exchange Commission, a grand jury, or any other state or federal agency, relating to the Recipient’s financial management, accounting procedures, or internal fiscal controls;
(e) A material adverse change in the condition of the Recipient, the Revenues, or the System, that the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement, or any other event that the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement;
(f) The Recipient’s material violation of, or threat to materially violate, any term of this Agreement;
(g) Suspicion of fraud, forgery, embezzlement, theft, or any other misuse of public funds by the Recipient or its employees, or by its contractors or agents regarding the Project or the System;
(h) An event requiring Notice as set forth in Exhibit C; (i) An Event of Default or an event that the Division determines may become an Event of Default.

B.1.9 Fraud and Misuse of Public Funds; Enforcement.

All requests for reimbursement submitted must be accurate and signed by the Recipient’s Authorized Representative under penalty of perjury. All costs submitted pursuant to this Agreement must only be for the work or tasks set forth in this Agreement. The Recipient must not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., match costs). Any eligible costs for which the Recipient is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is improper and will not be compensated. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements and, notwithstanding any other section in this Agreement, the termination of this Agreement requiring the repayment of all Project Funds disbursed hereunder. Additionally, the Deputy Director of the Division may request an audit; refer the matter for appropriate administrative action, including but not limited to the recovery of financial assistance provided and the imposition of civil penalties; and/or refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability. A person who knowingly makes or causes to be made any false statement, material misrepresentation, or false certification in any submittal may be subject to a civil penalty, criminal fine, or imprisonment. (Wat. Code, § 13490 et seq.) B.2 RECIPIENT’S PAYMENT OBLIGATION, PLEDGE, AND RESERVE B.2.1 Project Costs.

The Recipient must pay any and all costs connected with the Project including, without limitation, any and all Project Costs and Additional Payments. If the Project Funds are not sufficient to pay the Project Costs in full, the Recipient must nonetheless complete the Project and pay that portion of the Project Costs in City Council 26 – 25 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit B
excess of available Project Funds, and shall not be entitled to any reimbursement therefor from the State Water Board.

B.2.2 Estimated Principal Payment Due.

The estimated amount of principal that will be due to the State Water Board from the Recipient under this Agreement is ten million one hundred seventeen thousand three hundred sixty-five ($10,117,365.00).

B.2.3 Interest Rate and In-Lieu of Interest Charges.
(a) The Recipient agrees to make all Payments according to the schedule in Exhibit E, and as otherwise set forth herein, at an interest rate of one and one tenths % (1.1%) per annum. (b) Interest will accrue beginning with each disbursement. (c) In lieu of, and not to exceed, interest otherwise due under this Agreement, the Recipient agrees to pay the following charge(s), as further set forth in Exhibit E:
• an Administrative Service Charge
• a Drinking Water Small Community Emergency Grant Fund Charge B.2.4 [Reserved]
B.2.5 Obligation Absolute.

The obligation of the Recipient to make the Payments and other payments required to be made by it under this Agreement, from the Net Revenues and/or other amounts legally available to the Recipient therefor, is absolute and unconditional, and until such time as the Payments and Additional Payments have been paid in full, the Recipient must not discontinue or suspend any Payments or other payments required to be made by it hereunder when due, whether or not the Project, or any related part thereof is operating or operable or has been completed, or its use is suspended, interfered with, reduced or curtailed or terminated in whole or in part, and such Payments and other payments shall not be subject to reduction whether by offset or otherwise and shall not be conditional upon the performance or nonperformance by any party of any agreement for any cause whatsoever.

B.2.6 Payment Timing.
(a) The Recipient must pay interest annually, by July 1st of each year, until one year after Completion of Construction. Beginning no later than one year after Completion of Construction, the Recipient must make annual Payment of the principal of the Project Funds, together with all interest accruing thereon by July 1, 2026. The Recipient must make Payments fully amortizing the total principal of the Project by the Final Payment Date. Payments are based on a standard fully amortized assistance amount with equal annual payments.
(b) The remaining balance is the previous balance, plus the disbursements, plus the accrued interest on both, plus any Charge In Lieu of Interest, less the Payment. Payment calculations will be made beginning one (1) year after Completion of Construction. Exhibit E is a payment schedule based on the provisions of this Exhibit and an estimated disbursement schedule. Actual payments will be based on actual disbursements.

City Council 26 – 26 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit B
(c) Upon Completion of Construction and submission of necessary reports by the Recipient, the Division will prepare an appropriate payment schedule and supply the same to the Recipient. The Division may amend this schedule as necessary to accurately reflect amounts due under this Agreement. The Division will prepare any necessary amendments to the payment schedule and send them to the Recipient. The Recipient must make each Payment on or before the due date therefor. A ten (10) day grace period will be allowed, after which time a penalty in the amount of costs incurred by the State Water Board will be assessed for late payment. These costs may include, but are not limited to, lost interest earnings, staff time, bond debt service default penalties, if any, and other related costs. For purposes of penalty assessment, payment will be deemed to have been made if payment is deposited in the U.S. Mail within the grace period with postage prepaid and properly addressed. Any penalties assessed will not be added to the assistance amount balance, but will be treated as a separate account and obligation of the Recipient. The interest penalty will be assessed from the payment due date. (d) The Recipient is obligated to make all payments required by this Agreement to the State Water Board, notwithstanding any individual default by its constituents or others in the payment to the Recipient of fees, charges, taxes, assessments, tolls or other charges ("Charges") levied or imposed by the Recipient. The Recipient must provide for the punctual payment to the State Water Board of all amounts which become due under this Agreement and which are received from constituents or others in the payment to the Recipient. In the event of failure, neglect or refusal of any officer of the Recipient to levy or cause to be levied any Charge to provide payment by the Recipient under this Agreement, to enforce or to collect such Charge, or to pay over to the State Water Board any money collected on account of such Charge necessary to satisfy any amount due under this Agreement, the State Water Board may take such action in a court of competent jurisdiction as it deems necessary to compel the performance of all duties relating to the imposition or levying and collection of any of such Charges and the payment of the money collected therefrom to the State Water Board. Action taken pursuant hereto shall not deprive the State Water Board of, or limit the application of, any other remedy provided by law or by this Agreement. (e) Each Payment must be paid in lawful money of the United States of America by check or other acceptable form of payment set forth at www.waterboards.ca.gov/make_a_payment.

The Recipient must pay Payments and Additional Payments from Net Revenues and/or other amounts legally available to the Recipient therefor.

B.2.7 Pledged Revenues.

B.2.7.1 Establishment of Enterprise Fund and Reserve Fund.

In order to carry out its System Obligations, the Recipient covenants that it shall establish and maintain or shall have established and maintained the Enterprise Fund. All Revenues received shall be deposited when and as received in trust in the Enterprise Fund. As required in this Exhibit, the Recipient must establish and maintain a Reserve Fund.

B.2.7.2 Pledge of Net Revenues, Enterprise Fund, and Reserve Fund.

The Obligation hereunder shall be secured by a lien on and pledge of the Enterprise Fund, Net Revenues, and any Reserve Fund on parity with the Parity Obligations. The Recipient hereby pledges and grants such lien on and pledge of the Enterprise Fund, Net Revenues, and any Reserve Fund to secure the Obligation, including payment of Payments and Additional Payments hereunder. The Enterprise Fund, Net Revenues in the Enterprise Fund, and any Reserve Fund shall be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the Recipient.

B.2.7.3 Application and Purpose of the Enterprise Fund.

City Council 26 – 27 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit B
Subject to the provisions of any outstanding System Obligation, money on deposit in the Enterprise Fund shall be applied and used first, to pay Operations and Maintenance Costs, and thereafter, all amounts due and payable with respect to the System Obligations in order of priority. After making all payments hereinabove required to be made in each Fiscal Year, the Recipient may expend in such Fiscal Year any remaining money in the Enterprise Fund for any lawful purpose of the Recipient.

B.2.8 No Prepayment.

Pursuant to State Water Board’s Debt Management Policy, adopted on October 3, 2017, the Recipient may not prepay any portion of the principal and interest due under this Agreement without the written consent of the Deputy Director of the Division.

B.2.9 Reserve Fund.

Prior to Completion of Construction, the Recipient must establish a restricted Reserve Fund, held in its Enterprise Fund, equal to one year’s Debt Service on this Obligation. The Recipient must maintain the Reserve Fund throughout the term of this Agreement. The Reserve Fund is subject to lien and pledged as security for this Obligation, and its use is restricted to payment of this Obligation during the term of this Agreement.

B.3 RATES, FEES AND CHARGES.
(a) The Recipient must, to the extent permitted by law, fix, prescribe and collect rates, fees and charges for the System during each Fiscal Year which are reasonable, fair, and nondiscriminatory and which will be sufficient to generate Revenues in the amounts necessary to cover Operations and Maintenance Costs, and must ensure that Net Revenues are equal to [the sum of (i) at least 120% of the Maximum Annual Debt Service with respect to all outstanding System Obligations senior to and on parity with the Obligation and (ii) at least 100% of the Maximum Annual Debt Service with respect to all outstanding System Obligations subordinate to the Obligation], so long as System Obligations other than this Obligation are outstanding. Upon defeasance of all System Obligations other than this Obligation, this ratio must be at least 120%, except where System Obligations are defeased pursuant to refunding obligations.
(b) The Recipient may make adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but shall not reduce the rates, fees and charges then in effect unless the Net Revenues from such reduced rates, fees, and charges will at all times be sufficient to meet the requirements of this section.
(c) Upon consideration of a voter initiative to reduce Revenues, the Recipient must make a finding regarding the effect of such a reduction on the Recipient's ability to satisfy the rate covenant set forth in this Section. The Recipient must make its findings available to the public. The Recipient’s Authorized Representative must request, if necessary, the authorization of the Recipient’s decision-maker or decision-making body to file litigation to challenge any such initiative that it finds will render it unable to satisfy the rate covenant set forth in this Agreement and its obligation to operate and maintain the Project for its Useful Life. The Recipient must diligently pursue and bear any and all costs related to such challenge. The Recipient must notify and regularly update the State Water Board regarding the status of any such challenge.

B.4 ADDITIONAL DEBT.
(a) The Recipient’s future debt that is secured by Revenues pledged herein may not be senior to this Obligation.

City Council 26 – 28 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit B
(b) The Recipient may issue additional parity or subordinate debt only if all of the following conditions are met:
i. Net Revenues in the most recent Fiscal Year, excluding transfers from a rate stabilization fund, if any, meet the ratio for rate covenants set forth in this Exhibit with respect to any outstanding and proposed additional obligations;
ii. The Recipient is in compliance with any reserve fund requirement of this Obligation.

B.5 NO LIENS.

The Recipient must not make any pledge of or place any lien on the Project, System, or Revenues except as otherwise provided or permitted by this Agreement.

City Council 26 – 29 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
EXHIBIT C – GENERAL & PROGRAMMATIC TERMS & CONDITIONS
C.1 REPRESENTATIONS & WARRANTIES.

The Recipient represents, warrants, and commits to the following as of the Eligible Work Start Date and continuing thereafter for the term of this Agreement.

C.1.1 Application and General Recipient Commitments.

The Recipient has not made any untrue statement of a material fact in its application for this financial assistance, or omitted to state in its application a material fact that makes the statements in its application not misleading.

The Recipient agrees to comply with all terms, provisions, conditions, and commitments of this Agreement, including all incorporated documents.

The Recipient agrees to fulfill all assurances, declarations, representations, and commitments in its application, accompanying documents, and communications filed in support of its request for funding under this Agreement.

C.1.2 Authorization and Validity.

The execution and delivery of this Agreement, including all incorporated documents, has been duly authorized by the Recipient. Upon execution by both parties, this Agreement constitutes a valid and binding obligation of the Recipient, enforceable in accordance with its terms, except as such enforcement may be limited by law.

C.1.3 No Violations.

The execution, delivery, and performance by Recipient of this Agreement, including all incorporated documents, do not violate any provision of any law or regulation in effect as of the date of execution of this Agreement by the Recipient, or result in any breach or default under any contract, obligation, indenture, or other instrument to which Recipient is a party or by which Recipient is bound as of the date of execution of this Agreement by the Recipient.

C.1.4 No Litigation.

There are, as of the date of execution of this Agreement by the Recipient, no pending or, to Recipient’s knowledge, threatened actions, claims, investigations, suits, or proceedings before any governmental authority, court, or administrative agency which materially affect the financial condition or operations of the Recipient, the System, the Revenues, and/or the Project.

There are no proceedings, actions, or offers by a public entity to acquire by purchase or the power of eminent domain the System or any of the real or personal property related to or necessary for the Project.

C.1.5 Property Rights and Water Rights.

The Recipient owns or has sufficient property rights in the Project property for the longer of the Useful Life or the term of this Agreement, either in fee simple or for a term of years that is not subject to third-party revocation during the Useful Life of the Project.

City Council 26 – 30 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
The Recipient possesses all water rights necessary for this Project.

C.1.6 Solvency and Insurance.

None of the transactions contemplated by this Agreement will be or have been made with an actual intent to hinder, delay, or defraud any present or future creditors of Recipient. The Recipient is solvent and will not be rendered insolvent by the transactions contemplated by this Agreement. The Recipient is able to pay its debts as they become due. The Recipient maintains sufficient insurance coverage considering the scope of this Agreement, including, for example but not necessarily limited to, general liability, automobile liability, workers compensation and employer liability, professional liability.

C.1.7 Legal Status and Eligibility.

The Recipient is duly organized and existing and in good standing under the laws of the State of California. Recipient must at all times maintain its current legal existence and preserve and keep in full force and effect its legal rights and authority. The Recipient acknowledges that changes to its legal or financial status may affect its eligibility for funding under this Agreement and commits to maintaining its eligibility. Within the preceding ten years, the Recipient has not failed to demonstrate compliance with state or federal audit disallowances.

C.1.8 Financial Statements and Continuing Disclosure.

The financial statements of Recipient previously delivered to the State Water Board as of the date(s) set forth in such financial statements: (a) are materially complete and correct; (b) present fairly the financial condition of the Recipient; and (c) have been prepared in accordance with GAAP. Since the date(s) of such financial statements, there has been no material adverse change in the financial condition of the Recipient, nor have any assets or properties reflected on such financial statements been sold, transferred, assigned, mortgaged, pledged or encumbered, except as previously disclosed in writing by Recipient and approved in writing by the State Water Board.

The Recipient is current in its continuing disclosure obligations associated with its material debt, if any.

C.1.9 System Obligations
The Recipient has no System Obligations other than those defined in this Agreement.

C.1.10 No Other Material Debt.

The Recipient has no Material Obligations other than System Obligations.

C.1.11 Compliance with State Water Board Funding Agreements.

The Recipient represents that it is in compliance with all State Water Board funding agreements to which it is a party.

C.2 DEFAULTS AND REMEDIES
In addition to any other remedy set forth in this Agreement, the following remedies are available under this Agreement.

City Council 26 – 31 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
C.2.1 Return of Funds; Acceleration; and Additional Payments.

Notwithstanding any other provision of this Agreement, if the Division determines that an Event of Default has occurred, the Recipient may be required, upon demand, immediately to do each of the following:
i. return to the State Water Board any grant or principal forgiveness amounts received pursuant to this Agreement;
ii. accelerate the payment of any principal owed under this Agreement, all of which shall be immediately due and payable;
iii. pay interest at the highest legal rate on all of the foregoing; and iv. pay any Additional Payments.

C.2.3 Administrative remedies.

Whenever the State Water Board determines that the Recipient, the Recipient’s contractor, consultant, employee, agent, assignee, or grantee has violated any requirement or term of the Agreement, the State Water Board may impose civil penalties in accordance with Water Code, section 13497. The State Water Board may impose civil liability administratively against the Recipient or the Recipient’s consultant or contractor or other agent furnishing any information related to funds disbursed or costs claimed for reimbursement if the Recipient or the Recipient’s consultant or contractor or other agent fails to personally attest that the information is true, accurate, and complete the best of one’s knowledge. (Wat.

Code, § 13498.) The State Water Board may impose civil liability administratively against any person who makes a misrepresentation in any submittal to the State Water Board, including, but not limited to, an application, report, certification, record, invoice, form, or other document that is submitted to the State Water Board relating to a financial assistance agreement. (Wat. Code, § 13499.) C.2.4 Judicial remedies.

Whenever the State Water Board determines that an Event of Default shall have occurred, the State Water Board may enforce its rights under this Agreement by any judicial proceeding, whether at law or in equity. Without limiting the generality of the foregoing, the State Water Board may:
i. by suit in equity, require the Recipient to account for amounts relating to this Agreement as if the Recipient were the trustee of an express trust; ii. by mandamus or other proceeding, compel the performance by the Recipient and any of its officers, agents, and employees of any duty under the law or of any obligation or covenant under this Agreement, including but not limited to the imposition and collection of rates for the services of the System sufficient to meet all requirements of this Agreement; and
iii. take whatever action at law or in equity as may appear necessary or desirable to the State Water Board to collect the Payments then due or thereafter to become due, or to enforce performance of any obligation or covenant of the Recipient under this Agreement.

Upon the filing of a suit or other commencement of judicial proceedings to enforce the rights of the State Water Board under this Agreement, the State Water Board may make application for the appointment of a receiver or custodian of the Revenues, pending such proceeding, with such power as the court making such appointment may confer.

C.2.5 Termination.

Upon an Event of Default, the State Water Board may terminate this Agreement. Interest shall accrue on all amounts due at the highest legal rate of interest from the date that the State Water Board delivers notice of termination to the Recipient.

City Council 26 – 32 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
C.2.6 Damages for Breach of Tax-Exempt Status.

In the event that any breach of any of the provisions of this Agreement by the Recipient results in the loss of tax-exempt status for any bonds of the State or any subdivision or agency thereof, or if such breach results in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government by reason of any arbitrage profits, the Recipient must immediately reimburse the State or any subdivision or agency thereof in an amount equal to any damages paid by or loss incurred by the State or any subdivision or agency thereof due to such breach.

C.2.7 Damages for Breach of Federal Conditions.

In the event that any breach of any of the provisions of this Agreement by the Recipient results in the failure of Project Funds to be used pursuant to the provisions of this Agreement, or if such breach results in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government, the Recipient must immediately reimburse the State or any subdivision or agency thereof in an amount equal to any damages paid by or loss incurred by the State or any subdivision or agency thereof due to such breach.

C.2.8 Remedies and Limitations.

None of the remedies available to the State Water Board shall be exclusive of any other remedy, and each such remedy shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. The State Water Board may exercise any remedy, now or hereafter existing, without exhausting and without regard to any other remedy.

Any claim of the Recipient is limited to the rights and remedies provided to the Recipient under this Agreement and is subject to the claims procedures provided to the Recipient under this Agreement.

C.2.9 Non-Waiver.

Nothing in this Agreement shall affect or impair the Recipient’s Obligation to pay Payments as provided herein or shall affect or impair the right of the State Water Board to bring suit to enforce such payment.

No delay or omission of the State Water Board in the exercise of any right arising upon an Event of Default shall impair any such right or be construed to be a waiver of any such Event of Default. The State Water Board may exercise from time to time and as often as shall be deemed expedient by the State Water Board, any remedy or right provided by law or pursuant to this Agreement.

C.2.10 Status Quo.

If any action to enforce any right or exercise any remedy shall be brought and either discontinued or determined adversely to the State Water Board, then the State Water Board shall be restored to its former position, rights and remedies as if no such action had been brought.

C.3 STANDARD CONDITIONS
C.3.1 Access, Inspection, and Public Records.

The Recipient must ensure that the State Water Board, the Governor of the State, the United States Environmental Protection Agency, the Office of Inspector General, any member of Congress, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times during Project construction and thereafter for the term of the Agreement. The Recipient acknowledges that, except for a subset of information regarding archaeological records, the Project records and locations are public records, including but not limited to all of the submissions accompanying City Council 26 – 33 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
the application, all of the documents incorporated into this Agreement by reference, and all reports, reimbursement requests, and supporting documentation submitted hereunder.

C.3.2 Accounting and Auditing Standards; Financial Management Systems; Records Retention. (a) The Recipient must maintain project accounts according to GAAP as issued by the Governmental Accounting Standards Board (GASB) or its successor. The Recipient must maintain GAAP-compliant project accounts, including GAAP requirements relating to the reporting of infrastructure assets. (b) The Recipient must comply with federal standards for financial management systems. The Recipient agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit preparation of reports required by the federal government and tracking of Project funds to a level of expenditure adequate to establish that such funds have not been used in violation of federal or state law or the terms of this Agreement. To the extent applicable, the Recipient is bound by, and must comply with, the provisions and requirements of the federal Single Audit Act of 1984 and 2 CFR Part 200, subpart F, and updates or revisions, thereto.
(c) Without limitation of the requirement to maintain Project accounts in accordance with GAAP, the Recipient must:
i. Establish an official file for the Project which adequately documents all significant actions relative to the Project;
ii. Establish separate accounts which will adequately and accurately depict all amounts received and expended on the Project, including all assistance funds received under this Agreement;
iii. Establish separate accounts which will adequately depict all income received which is attributable to the Project, specifically including any income attributable to assistance funds disbursed under this Agreement; iv. Establish an accounting system which will accurately depict final total costs of the Project, including both direct and Indirect Costs;
v. Establish such accounts and maintain such records as may be necessary for the State to fulfill federal reporting requirements, including any and all reporting requirements under federal tax statutes or regulations; and vi. If Force Account is used by the Recipient for any phase of the Project, other than for planning, design, and construction engineering and administration provided for by allowance, accounts will be established which reasonably document all employee hours charged to the Project and the associated tasks performed by each employee.
(d) The Recipient must maintain separate books, records and other material relative to the Project.

The Recipient must also retain such books, records, and other material for itself and for each contractor or subcontractor who performed or performs work on this project for a minimum of thirty-six (36) years after Completion of Construction. The Recipient must require that such books, records, and other material are subject at all reasonable times (at a minimum during normal business hours) to inspection, copying, and audit by the State Water Board, the California State Auditor, the Bureau of State Audits, the United States Environmental Protection Agency (USEPA), the Office of Inspector General, the Internal Revenue Service, the Governor, or any authorized representatives of the aforementioned. The Recipient must allow and must require its contractors to allow interviews during normal business hours of any employees who might reasonably have information related to such records. The Recipient agrees to include a similar duty regarding audit, interviews, and records retention in any contract or subcontract related to the performance of this Agreement. The provisions of this section survive the term of this Agreement.

City Council 26 – 34 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
C.3.3 Amendment.

No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by both the Recipient and the Deputy Director or designee.

Requests for amendments must be in writing and directed to the contact listed in Section 4 and to the Division’s Chief of Loans and Grants Administration Section.

C.3.4 Assignability.

This Agreement is not assignable by the Recipient, either in whole or in part, without the consent of the State Water Board in the form of a formal written amendment to this Agreement.

C.3.5 Audit.
(a) The Division may call for an audit of financial information relative to the Project if the Division determines that an audit is desirable to assure program integrity or if an audit becomes necessary because of state or federal requirements. If an audit is called for, the audit must be performed by a certified public accountant independent of the Recipient and at the cost of the Recipient. The audit must be in the form required by the Division.
(b) Audit disallowances must be returned to the State Water Board.

C.3.6 Bonding.

Where contractors are used, the Recipient must not authorize construction to begin until each contractor has furnished a performance bond in favor of the Recipient in the following amounts: faithful performance (100%) of contract value; labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00.

C.3.7 Competitive Bidding
Recipient must adhere to any applicable state law or local ordinance for competitive bidding and applicable labor laws.

C.3.8 Compliance with Applicable Laws, Rules, and Requirements.

The Recipient must, at all times, comply with and require its contractors and subcontractors to comply with all applicable federal and state laws, rules, guidelines, regulations, and requirements. Without limitation of the foregoing, to the extent applicable, the Recipient must:
(a) Comply with the provisions of the adopted environmental mitigation plan, if any, for the term of this Agreement;
(b) Comply with the Policy; and
(c) Comply with and require compliance with the state and federal requirements set forth elsewhere in this Agreement.

C.3.9 Computer Software.

The Recipient certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Agreement for the acquisition, operation or maintenance of computer software in violation of copyright laws.

City Council 26 – 35 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
C.3.10 Conflict of Interest.

The Recipient certifies that its owners, officers, directors, agents, representatives, and employees are in compliance with applicable state and federal conflict of interest laws.

C.3.11 Continuous Use of Project; No Lease, Sale, Transfer of Ownership, or Disposal of Project.

The Recipient agrees that, except as provided in this Agreement, it will not abandon, substantially discontinue use of, lease, sell, transfer ownership of, or dispose of all or a significant part or portion of the Project during the Useful Life of the Project without prior written approval of the Division. Such approval may be conditioned as determined to be appropriate by the Division, including a condition requiring repayment of all disbursed Project Funds or all or any portion of all remaining funds covered by this Agreement together with accrued interest and any penalty assessments that may be due.

C.3.12 Data Management.

The Recipient will undertake appropriate data management activities so that Project data can be incorporated into statewide data systems.

C.3.13 Disputes.
(a) The Recipient may appeal a staff decision within 30 days to the Deputy Director of the Division or designee, for a final Division decision. The Recipient may appeal a final Division decision to the State Water Board within 30 days. The Office of the Chief Counsel of the State Water Board will prepare a summary of the dispute and make recommendations relative to its final resolution, which will be provided to the State Water Board’s Executive Director and each State Water Board Member. Upon the motion of any State Water Board Member, the State Water Board will review and resolve the dispute in the manner determined by the State Water Board. Should the State Water Board determine not to review the final Division decision, this decision will represent a final agency action on the dispute. (b) This clause does not preclude consideration of legal questions, provided that nothing herein shall be construed to make final the decision of the State Water Board, or any official or representative thereof, on any question of law.
(c) Recipient must continue with the responsibilities under this Agreement during any dispute. (d) This section relating to disputes does not establish an exclusive procedure for resolving claims within the meaning of Government Code sections 930 and 930.4.

C.3.14 [Reserved]
C 3.15. Environmental Clearance.
(a) No work that is subject to CEQA or NEPA may proceed under this Agreement unless the State Water Board has provided environmental clearance. The State Water Board may require changes in the scope of work or additional mitigation as a condition to providing construction or implementation funding under this Agreement. Recipient shall not perform any work subject to CEQA and/or NEPA before the State Water Board completes its environmental review and specifies any changes in scope or additional mitigation that may be required. Proceeding with work subject to CEQA and/or NEPA without approval by the State Water Board shall constitute a breach of a material provision of this Agreement.

City Council 26 – 36 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
(b) If this Project includes modification of a river or stream channel, the Recipient must fully mitigate environmental impacts resulting from the modification. The Recipient must provide documentation that the environmental impacts resulting from such modification will be fully mitigated considering all of the impacts of the modification and any mitigation, environmental enhancement, and environmental benefit resulting from the Project, and whether, on balance, any environmental enhancement or benefit equals or exceeds any negative environmental impacts of the Project.

C.3.16 Governing Law.

This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.

C.3.17 Income Restrictions.

The Recipient agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Recipient under this Agreement must be paid by the Recipient to the State Water Board, to the extent that they are properly allocable to costs for which the Recipient has been reimbursed by the State Water Board under this Agreement.

C.3.18 Indemnification and State Reviews.

The parties agree that review or approval of Project plans and specifications by the State Water Board is for administrative purposes only, including conformity with application and eligibility criteria, and expressly not for the purposes of design defect review or construction feasibility, and does not relieve the Recipient of its responsibility to properly plan, design, construct, operate, and maintain the Project. To the extent permitted by law, the Recipient agrees to indemnify, defend, and hold harmless the State Water Board, the Bank, and any trustee, and their officers, employees, and agents for the Bonds, if any (collectively, "Indemnified Persons"), against any loss or liability arising out of any claim or action brought against any Indemnified Persons from and against any and all losses, claims, damages, liabilities, or expenses, of every conceivable kind, character, and nature whatsoever arising out of, resulting from, or in any way connected with (1) the System or the Project or the conditions, occupancy, use, possession, conduct, or management of, work done in or about, or the planning, design, acquisition, installation, or construction, of the System or the Project or any part thereof; (2) the carrying out of any of the transactions contemplated by this Agreement or any related document; (3) any violation of any applicable law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the Toxic Substances Control Act, the Occupational Safety and Health Act, the Safe Drinking Water Act, the California Hazardous Waste Control Law, and California Water Code Section 13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the System or the Project; or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein, in light of the circumstances under which they were made, not misleading with respect to any information provided by the Recipient for use in any disclosure document utilized in connection with any of the transactions contemplated by this Agreement, except those arising from the gross negligence or willful misconduct of the Indemnified Persons. The Recipient must also provide for the defense and indemnification of the Indemnified Persons in any contractual provision extending indemnity to the Recipient in any contract let for the performance of any work under this Agreement, and must cause the Indemnified Persons to be included within the scope of any provision for the indemnification and defense of the Recipient in any contract or subcontract. To the fullest extent permitted by law, the Recipient agrees to pay and discharge any judgment or award entered or made against Indemnified Persons with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section survive the term of this Agreement.

City Council 26 – 37 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
C.3.19 Independent Actor.

The Recipient, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State Water Board.

C.3.20 Integration.

This Agreement constitutes the complete and final agreement between the parties. No oral or written understanding or agreement not incorporated in this Agreement shall be binding on either party.

C.3.21 Leveraging Covenants.
(a) Notwithstanding any other provision hereof, the Recipient covenants and agrees that it will comply with the Tax Covenants set forth in Exhibit F of this Agreement. (b) The Recipient covenants to furnish such financial, operating and other data pertaining to the Recipient as may be requested by the State Water Board to: (i) enable the State Water Board to cause the issuance of Bonds and provide for security therefor; or (ii) enable any underwriter of Bonds issued for the benefit of the State Water Board to comply with Rule 15c2-12(b)(5). (c) The Recipient further covenants to provide the State Water Board with copies of all continuing disclosure documents or reports that are disclosed pursuant to (i) the Recipient’s continuing disclosure undertaking or undertakings made in connection with any outstanding System Obligation, (ii) the terms of any outstanding System Obligation, or (iii) a voluntary disclosure of information related to an outstanding System Obligation. The Recipient must disclose such documents or reports to the State Water Board at the same time such documents or reports are submitted to any dissemination agent, trustee, nationally recognized municipal securities information repository, the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access (EMMA) website or other person or entity.

C.3.22 No Discrimination.
(a) The Recipient must comply with Government Code section 11135 and the implementing regulations (Cal. Code Regs, tit. 2, § 11140 et seq.), including, but not limited to, ensuring that no person is unlawfully denied full and equal access to the benefits of, or unlawfully subjected to discrimination in the operation of, the Project or System on the basis of sex, race, color, religion, ancestry, national origin, ethnic group identification, age, mental disability, physical disability, medical condition, genetic information, marital status, or sexual orientation as such terms are defined under California law, for as long as the Recipient retains ownership or possession of the Project.
(b) If Project Funds are used to acquire or improve real property, the Recipient must include a covenant of nondiscrimination running with the land in the instrument effecting or recording the transfer of such real property.
(c) The Recipient must comply with the federal American with Disabilities Act of 1990 and implementing regulations as required by Government Code section 11135(b). (d) The Recipient’s obligations under this section shall survive the term of this Agreement. (e) During the performance of this Agreement, Recipient and its contractors and subcontractors must not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, sexual orientation, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital City Council 26 – 38 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
status, denial of family care leave, or genetic information, gender, gender identity, gender expression, or military and veteran status.
(f) The Recipient, its contractors, and subcontractors must ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. (g) The Recipient, its contractors, and subcontractors must comply with the provisions of the Fair Employment and Housing Act and the applicable regulations promulgated thereunder. (Gov. Code, §12990, subds. (a)-(f) et seq.;Cal. Code Regs., tit. 2, § 7285 et seq.) Such regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full. (h) The Recipient, its contractors, and subcontractors must comply with all applicable federal civil rights regulations, including statutory and national policy requirements. (2 CFR § 200.300). This includes, to the greatest extent practicable and to the extent permitted by law, the requirement to respect and protect the freedom of persons and organizations to engage in political and religious speech. (Executive Order 13798).
(i) The Recipient, its contractors, and subcontractors must give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (j) The Recipient must include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement.

C.3.23 No Third Party Rights.

The parties to this Agreement do not create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or of any duty, covenant, obligation, or undertaking established herein.

C.3.24 No Obligation of the State.

Any obligation of the State Water Board herein contained shall not be an obligation, debt, or liability of the State and any such obligation shall be payable solely out of the moneys encumbered pursuant to this Agreement.

C.3.25 Notice.

Upon the occurrence of any of the following events, the Recipient must provide notice as set forth below. (a) Within 24 hours of the following, the Recipient must notify the Division by phone at (916) 327-9978 and by email to [email protected]; Uyen.trinh[email protected] and [email protected]:
i. The seizure of, or levy on, any Revenues securing this Agreement; ii. Any discovery of any potential tribal cultural resource and/or archaeological or historical resource. Should a potential tribal cultural resource and/or archaeological or historical resource be discovered during construction or Project implementation, the Recipient must ensure that all work in the area of the find will cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the Division has determined what actions should be taken to protect and preserve the resource.

The Recipient must implement appropriate actions as directed by the Division. (b) Within five (5) business days, the Recipient must notify the Division by phone at (916) 327-9978; by email to [email protected]
[email protected]; [email protected] and City Council 26 – 39 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
[email protected]; and by mail to the contact address set forth in Section 4 of this Agreement of the occurrence of any of the following events:
i. Bankruptcy, insolvency, receivership or similar event of the Recipient, or actions taken in anticipation of any of the foregoing;
ii. Change of ownership of the Project or the System or change of management or service contracts, if any, for operation of the System; iii. Loss, theft, damage, or impairment to Project, the Revenues or the System; iv. Failure to meet any debt service coverage test in Exhibit B of this Agreement; v. Draws on the Reserve Fund;
vi. Listed Events and Events of Default, except as otherwise set forth in this section; vii. Failure to observe or perform any covenant or comply with any condition in this Agreement;
viii. An offer from a public entity to purchase the Project or the System or any portion thereof, or any of the real or personal property related to or necessary for the Project;
ix. A proceeding or action by a public entity to acquire the Project or the System by power of eminent domain;
x. Incurrence of a System Obligation or other Material Obligation by the Recipient; or
xi. A default, event of acceleration, termination event, modification of terms, or other similar event under the terms of a System Obligation or other Material Obligation of the Recipient, any of which reflect financial difficulties. (c) Within ten (10) business days, the Recipient must notify the Division by phone at (916) 327-9978, by email to [email protected]; Uyen.trinh[email protected] and [email protected], and by mail to the contact address set forth in Section 4 of this Agreement of the following events:
i. Material defaults on Material Obligations, other than this Obligation; ii. Unscheduled draws on material debt service reserves or credit enhancements, reflecting financial difficulties;
iii. Substitution of credit or liquidity providers, if any or their failure to perform; iv. Any litigation pending or threatened with respect to the Project or the Recipient’s technical, managerial or financial capacity to operate the System or the Recipient’s continued existence;
v. Circulation of a petition to repeal, reduce, or otherwise challenge the Recipient’s rates for services of the System;
vi. Consideration of dissolution, or disincorporation, or any other event that could materially impair the Revenues;
vii. Adverse tax opinions, the issuance by the Internal Revenue Service or proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) or other material notices of determinations with respect to the tax status of any tax-exempt bonds;
viii. Rating changes on outstanding System Obligations, if any; ix. Issuance of additional Parity Obligations;
x. Enforcement actions by or brought on behalf of the State Water Board or Regional Water Board; or
xi. Any investigation by the District Attorney, California State Auditor, Bureau of State Audits, United States Environmental Protection Agency’s Office of Inspector General, the Internal Revenue Service, Securities and Exchange Commission, a grand jury, or any other state or federal agency, relating to the Recipient’s financial management, accounting procedures, or internal fiscal controls;
City Council 26 – 40 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
(d) The Recipient must notify the Division promptly by phone at (916) 327-9978, by email to [email protected]; [email protected] and [email protected], and by mail to the contact address set forth in Section 4 of this Agreement of any of the following events:
i. The discovery of a false statement of fact or representation made in this Agreement or in the application to the Division for this financial assistance, or in any certification, report, or request for reimbursement made pursuant to this Agreement, by the Recipient, its employees, agents, or contractors; ii. Any substantial change in scope of the Project. The Recipient must undertake no substantial change in the scope of the Project until prompt written notice of the proposed change has been provided to the Division and the Division has given written approval for the change;
iii. Cessation of all major construction work on the Project where such cessation of work is expected to or does extend for a period of thirty (30) days or more; iv. Any circumstance, combination of circumstances, or condition, which is expected to or does delay Completion of Construction for a period of ninety (90) days or more;
v. Discovery of any unexpected endangered or threatened species, as defined in the federal Endangered Species Act. Should a federally protected species be unexpectedly encountered during construction of the Project, the Recipient agrees to promptly notify the Division. This notification is in addition to the Recipient’s obligations under the federal Endangered Species Act; vi. Any Project monitoring, demonstration, or other implementation activities required in Exhibit A or Exhibit D of this Agreement, if any; vii. Any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunity for attendance and participation by state representatives with at least ten (10) working days’ notice to the Division; viii. Any allegation of research misconduct involving research activities that are supported in whole or in part with EPA funds under this Project, as required by Exhibit C.4.3(xxvii);
ix. Any events requiring notice to the Division pursuant to the provisions of this Agreement;
x. Completion of Construction of the Project, and actual Project Completion; xi. The award of the prime construction contract for the Project; xii. Initiation of construction of the Project.

C.3.26 Operation and Maintenance; Insurance.

The Recipient agrees to sufficiently and properly staff, operate and maintain all portions of the System during the Useful Life of the Project in accordance with all applicable state and federal laws, rules, and regulations.

The Recipient will procure and maintain or cause to be maintained insurance on the System with responsible insurers, or as part of a reasonable system of self-insurance, in such amounts and against such risks (including damage to or destruction of the System) as are usually covered in connection with systems similar to the System. Such insurance may be maintained by a self-insurance plan so long as such plan provides for (i) the establishment by the Recipient of a separate segregated self-insurance fund in an amount determined (initially and on at least an annual basis) by an independent insurance consultant experienced in the field of risk management employing accepted actuarial techniques and (ii) the establishment and maintenance of a claims processing and risk management program.

City Council 26 – 41 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
In the event of any damage to or destruction of the System caused by the perils covered by such insurance, the net proceeds thereof shall be applied to the reconstruction, repair or replacement of the damaged or destroyed portion of the System. The Recipient must begin such reconstruction, repair or replacement as expeditiously as possible, and must pay out of such net proceeds all costs and expenses in connection with such reconstruction, repair or replacement so that the same must be completed and the System must be free and clear of all claims and liens. If such net proceeds are insufficient to reconstruct, repair, or restore the System to the extent necessary to enable the Recipient to pay all remaining unpaid principal portions of the Payments, if any, in accordance with the terms of this Agreement, the Recipient must provide additional funds to restore or replace the damaged portions of the System.

Recipient agrees that for any policy of insurance concerning or covering the construction of the Project, it will cause, and will require its contractors and subcontractors to cause, a certificate of insurance to be issued showing the State Water Board, its officers, agents, employees, and servants as additional insured; and must provide the Division with a copy of all such certificates prior to the commencement of construction of the Project.

C.3.27 Permits, Subcontracting, and Remedies.

Recipient must procure all permits, licenses and other authorizations necessary to accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices necessary and incidental to the due and lawful prosecution of the work. Signed copies of any such permits or licenses must be submitted to the Division before any construction begins.

The Recipient must not contract or allow subcontracting with excluded parties. The Recipient must not contract with any party who is debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which this funding is authorized. For any work related to this Agreement, the Recipient must not contract with any individual or organization on the State Water Board’s List of Disqualified Businesses and Persons that is identified as debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which funding under this Agreement is authorized. The State Water Board’s List of Disqualified Businesses and Persons is located at
http://www.waterboards.ca.gov/water_issues/programs/enforcement/fwa/dbp.shtml C.3.28 Professionals.

The Recipient agrees that only licensed professionals will be used to perform services under this Agreement where such services are called for. All technical reports required pursuant to this Agreement that involve planning, investigation, evaluation, design, or other work requiring interpretation and proper application of engineering, architectural, or geologic sciences, shall be prepared by or under the direction of persons registered to practice in California pursuant to Business and Professions Code, sections 5536.1, 6735, 7835, and 7835.1. To demonstrate compliance with California Code of Regulations, title 16, sections 415 and 3065, all technical reports must contain a statement of the qualifications of the responsible registered professional(s). As required by these laws, completed technical reports must bear the signature(s) and seal(s) of the registered professional(s) in a manner such that all work can be clearly attributed to the professional responsible for the work.

C.3.29 Prevailing Wages.

The Recipient agrees to be bound by all applicable provisions of State Labor Code regarding prevailing wages. The Recipient must monitor all agreements subject to reimbursement from this Agreement to ensure that the prevailing wage provisions of the State Labor Code are being met.

City Council 26 – 42 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
In addition, the Recipient agrees to comply with the Davis-Bacon provisions incorporated by reference in Section 3 of this Agreement.

C.3.30 Public Funding.

This Project is publicly funded. Any service provider or contractor with which the Recipient contracts must not have any role or relationship with the Recipient, that, in effect, substantially limits the Recipient's ability to exercise its rights, including cancellation rights, under the contract, based on all the facts and circumstances.

C.3.31 Recipient’s Responsibility for Work.

The Recipient shall be responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Recipient shall be responsible for responding to any and all disputes arising out of its contracts for work on the Project. The State Water Board will not mediate disputes between the Recipient and any other entity concerning responsibility for performance of work.

C.3.32 Related Litigation.

Under no circumstances may the Recipient use funds from any reimbursement under this Agreement to pay costs associated with any litigation the Recipient pursues against the State Water Board or any Regional Water Quality Control Board. Regardless of the outcome of any such litigation, and notwithstanding any conflicting language in this Agreement, the Recipient agrees to repay all of the disbursed funds plus interest in the event that Recipient does not complete the project.

C.3.33 Rights in Data.

The Recipient agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes, and other written or graphic work produced in the performance of this Agreement are subject to the rights of the State as set forth in this section. The State shall have the right to reproduce, publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and to authorize others to do so. If any such work is copyrightable, the Recipient may copyright the same, except that, as to any work which is copyrighted by the Recipient, the State reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, and use such work, or any part thereof, and to authorize others to do so, and to receive electronic copies from the Recipient upon request.

C.3.34 State Water Board Action; Costs and Attorney Fees.

Any remedy provided in this Agreement is in addition to and not in derogation of any other legal or equitable remedy available to the State Water Board as a result of breach of this Agreement by the Recipient, whether such breach occurs before or after completion of the Project, and exercise of any remedy provided by this Agreement by the State Water Board shall not preclude the State Water Board from pursuing any legal remedy or right which would otherwise be available. In the event of litigation between the parties hereto arising from this Agreement, it is agreed that each party shall bear its own costs and attorney fees.

C.3.35 Timeliness.

Time is of the essence in this Agreement.

City Council 26 – 43 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
C.3.36 Unenforceable Provision.

In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.

C.3.37 Venue.

Any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California.

C.3.38 Waiver and Rights of the State Water Board.

Any waiver of rights by the State Water Board with respect to a default or other matter arising under this Agreement at any time shall not be considered a waiver of rights with respect to any other default or matter. Any rights and remedies of the State Water Board provided for in this Agreement are in addition to any other rights and remedies provided by law.

C.4 MISCELLANEOUS STATE AND FEDERAL REQUIREMENTS
C.4.1 [Reserved]
C.4.2 State Cross-Cutters.

Recipient represents that, as applicable, it complies and covenants to maintain compliance with the following for the term of the Agreement:
i. The California Environmental Quality Act (CEQA), as set forth in Public Resources Code 21000 et seq. and in the CEQA Guidelines at Title 14, Division 6, Chapter 3, Section 15000 et seq. ii. Water Conservation requirements, including regulations in Division 3 of Title 23 of the California Code of Regulations.
iii. Monthly Water Diversion Reporting requirements, including requirements set forth in Water Code section 5103.
iv. Public Works Contractor Registration with Department of Industrial Relations requirements, including requirements set forth in Sections 1725.5 and 1771.1 of the Labor Code. v. Volumetric Pricing & Water Meters requirements, including the requirements of Water Code sections 526 and 527.
vi. Urban Water Management Plan requirements, including the Urban Water Management Planning Act (Water Code, § 10610 et seq.).
vii. Urban Water Demand Management requirements, including the requirements of Section 10608.56 of the Water Code.
viii. Delta Plan Consistency Findings requirements, including the requirements of Water Code section 85225 and California Code of Regulations, title 23, section 5002.

City Council 26 – 44 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
ix. Agricultural Water Management Plan Consistency requirements, including the requirements of Water Code section 10852.
x. Charter City Project Labor Requirements, including the requirements of Labor Code section 1782 and Public Contract Code section 2503.

C.4.3 Federal Requirements and Cross-Cutters for SRF Funding.

The Recipient acknowledges, warrants compliance with, and covenants to continuing compliance with the following federal terms and conditions for the Useful Life of the Project:
i. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the Recipient shall not purchase “iron and steel products” produced outside of the United States on this Project. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the Recipient hereby certifies that all “iron and steel products” used in the Project were or will be produced in the United States. For purposes of this section, the term "iron and steel products" means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. “Steel” means an alloy that includes at least 50 percent iron, between .02 and 2 percent carbon, and may include other elements.
ii. The Recipient must include in full the Wage Rate Requirements (Davis-Bacon) language incorporated by reference in Section 3 of this Agreement in all construction contracts and subcontracts.
iii. The Recipient must comply with the signage requirements set forth in Exhibit A. iv. The Recipient shall notify the State Water Board and the USEPA contact of public or media events publicizing the accomplishment of significant events related to this Project and provide the opportunity for attendance and participation by federal representatives with at least ten (10) working days’ notice.
v. The Recipient shall comply with applicable EPA general terms and conditions found at http://www.epa.gov/.
vi. No Recipient may receive funding under this Agreement unless it has provided its Unique Entity Identifier, assigned by the System for Award management, to the State Water Board. vii. The Recipient represents and warrants that it and its principals are not excluded or disqualified from participating in this transaction as such terms are defined in Parts 180 and 1532 of Title 2 of the Code of Federal Regulations (2 CFR). If the Recipient is excluded after execution of this Agreement, the Recipient shall notify the Division within ten (10) days and shall inform the Division of the Recipient’s exclusion in any request for amendment of this Agreement. The Recipient shall comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR. Such compliance is a condition precedent to the State Water Board’s performance of its obligations under this Agreement. When entering into a covered transaction as defined in Parts 180 and 1532 of 2 CFR, the Recipient shall require the other party to the covered transaction to comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR.

City Council 26 – 45 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
viii. To the extent applicable, the Recipient shall disclose to the State Water Board any potential conflict of interest consistent with USEPA’s Final Financial Assistance Conflict of Interest Policy at https://www.epa.gov/grants/epas-final-financial-assistance-conflict-interest-policy. A conflict of interest may result in disallowance of costs.
ix. USEPA and the State Water Board have the right to reproduce, publish, use and authorize others to reproduce, publish and use copyrighted works or other data developed under this assistance agreement.
x. Where an invention is made with Project Funds, USEPA and the State Water Board retain the right to a worldwide, nonexclusive, nontransferable, irrevocable, paid-up license to practice the invention owned by the Recipient. The Recipient must utilize the Interagency Edison extramural invention reporting system at http://iEdison.gov and shall notify the Division when an invention report, patent report, or utilization report is filed.
xi. The Recipient agrees that any reports, documents, publications or other materials developed for public distribution supported by this Agreement shall contain the Disclosure statement set forth in Exhibit A.
xii. The Recipient acknowledges that it is encouraged to follow guidelines established under Section 508 of the Rehabilitation Act, codified at 36 CFR Part 1194, with respect to enabling individuals with disabilities to participate in its programs supported by this Project. xiii. The Recipient, its employees, contractors and subcontractors and their employees warrants that it will not engage in severe forms of trafficking in persons, procure a commercial sex act during the term of this Agreement, or use forced labor in the performance of this Agreement. The Recipient must include this provision in its contracts and subcontracts under this Agreement. The Recipient must inform the State Water Board immediately of any information regarding a violation of the foregoing. The Recipient understands that failure to comply with this provision may subject the State Water Board to loss of federal funds. The Recipient agrees to compensate the State Water Board for any such funds lost due to its failure to comply with this condition, or the failure of its contractors or subcontractors to comply with this condition. The State Water Board may unilaterally terminate this Agreement if the Recipient that is a private entity is determined to have violated the foregoing.
xiv. The Recipient certifies to the best of its knowledge and belief that:
a. No federal appropriated funds have been paid or will be paid, by or on behalf of the Recipient, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. b. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress in connection with this Agreement, the Recipient shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions, and notify the State Water Board.

The Recipient shall require this certification from all parties to any contract or agreement that the Recipient enters into and under which the Recipient incurs costs for which it seeks reimbursements under this Agreement.

City Council 26 – 46 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
xv. The Recipient must comply with the following federal non-discrimination requirements:
a. Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, and national origin, including limited English proficiency (LEP). b. Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination against persons with disabilities.
c. The Age Discrimination Act of 1975, which prohibits age discrimination. d. Section 13 of the Federal Water Pollution Control Act Amendments of 1972, which prohibits discrimination on the basis of sex.
e. 40 CFR Part 7, as it relates to the foregoing.
xvi. Executive Order No. 11246. The Recipient shall include in its contracts and subcontracts related to the Project the following provisions:
"During the performance of this contract, the contractor agrees as follows:"(a) The contractor will not discriminate against any employee or applicant for employment because of race, creed, color, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, or national origin. Such action shall include, but not be limited to the following:
employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause.
"(b) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, or national origin. "(c) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or workers' representative of the contractor's commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
"(d) The contractor will comply with all provisions of Executive Order No. 11246 of Sept. 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. "(e) The contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
"(f) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of such rules, regulations, or orders, this contract may be cancelled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 11246 of Sept 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

City Council 26 – 47 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
"(g) The contractor will include the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of Sept. 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, That in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the contracting agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States."
xvii. The Recipient agrees to comply with the requirements of USEPA’s Program for Utilization of Small, Minority and Women’s Business Enterprises.

xviii. Procurement Prohibitions under Section 306 of the Clean Air Act and Section 508 of the Clean Water Act, including Executive Order 11738, Administration of the Clean Air Act and the Federal Water Pollution Control Act with Respect to Federal Contracts, Grants, or Loans; 42 USC § 7606; 33 USC § 1368. Except where the purpose of this Agreement is to remedy the cause of the violation, the Recipient may not procure goods, services, or materials from suppliers excluded under the federal System for Award Management: http://www.sam.gov/ . xix. Uniform Relocation and Real Property Acquisition Policies Act, Pub. L. 91-646, as amended; 42 USC §§4601-4655. The Recipient must comply with the Act’s implementing regulations at 49 CFR 24.101 through 24.105.
xx. The Recipient agrees that if its network or information system is connected to USEPA networks to transfer data using systems other than the Environmental Information Exchange Network or USEPA’s Central Data Exchange, it will ensure that any connections are secure. xxi. All geospatial data created pursuant to this Agreement that is submitted to the State Water Board for use by USEPA or that is submitted directly to USEPA must be consistent with Federal Geographic Data Committee endorsed standards. Information on these standards may be found at www.fgdc.gov.
xxii. If the Recipient is a water system that serves 500 or fewer persons, the Recipient represents that it has considered publicly-owned wells as an alternative drinking water supply. xxiii. The Recipient represents that it is not a corporation that has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability; and it is not a corporation that was convicted of a felony criminal violation under a Federal law within the preceding 24 months. xxiv. The Recipient agrees to immediately notify the Project Manager in writing about any allegation of research misconduct involving research activities that are supported in whole or in part with EPA funds under this Project, including fabrication, falsification, or plagiarism in proposing, performing, or reviewing research, or in reporting research results, or ordering, advising, or suggesting that subordinates engage in research misconduct.
xxv. The Recipient agrees to comply with, and require all contractors and subcontractors to comply with, EPA’s Scientific Integrity Policy, available at https://www.epa.gov/osa/policy-epa-scientificintegrity, when conducting, supervising, and communicating science and when using or applying the results of science. For purposes of this condition scientific activities include, but are not limited to, computer modelling, economic analysis, field sampling, laboratory experimentation, City Council 26 – 48 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
demonstrating new technology, statistical analysis, and writing a review article on a scientific issue.

The Recipient shall not suppress, alter, or otherwise impede the timely release of scientific findings or conclusions; intimidate or coerce scientists to alter scientific data, findings, or professional opinions or exert non-scientific influence on scientific advisory boards; knowingly misrepresent, exaggerate, or downplay areas of scientific uncertainty; or otherwise violate the EPA’s Scientific Integrity Policy. The Recipient must refrain from acts of research misconduct, including publication or reporting, as described in EPA’s Policy and Procedures for Addressing Research Misconduct, Section 9.C, and must ensure scientific findings are generated and disseminated in a timely and transparent manner, including scientific research performed by contractors and subcontractors.
xxvi. The Recipient agrees to comply with the Animal Welfare Act of 1966 (7 USC 2131-2156).

Recipient also agrees to abide by the “U.S. Government Principles for the Utilization and Care of Vertebrate Animals used in Testing, Research, and Training,” available at http://grants.nih.gov/grants/olaw/references/phspol.htm#USGovPrinciples. xxvii. The Recipient certifies that no Project Funds will be used on:
a. Video surveillance or telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities), telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities);
b. Telecommunications or video surveillance services produced by such entities; c. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country; or
d. Other telecommunications or video surveillance services or equipment in violation of 2 CFR 200.216.
xxviii. BABA.

The Recipient acknowledges that funds received under this Agreement are subject to the Build America Buy America (BABA) requirements of Public Law 117-58 (the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law (BIL), signed into law on November 15, 2021), which are in addition to “iron and steel products” requirements described in section C.4.3 (i) above. Specifically, unless (1) the Recipient has requested and obtained a waiver from USEPA on file with the State Water Board pertaining to the Project or the Project is otherwise covered by a general applicability waiver, as confirmed in writing by the State Water Board; or (2) the State Water Board and, to the extent the Project is co-funded by any other agency using federal funds subject to BABA requirements, each such agency has advised the Recipient in writing that the BABA requirements are not applicable to the Project, the Recipient shall ensure and certifies that, as these terms are defined within and made applicable by Public Law 117-58:
(a) all iron and steel used in the Project are produced in the United States; (b) the manufactured products used in the Project are produced in the United States; and City Council 26 – 49 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit C
(c) the construction materials used in the Project are produced in the United States.

The Recipient must require its contractors and subcontractors to comply with all applicable BABA requirements and must include the following provision in its contracts and subcontracts under this Agreement:

“The contractor acknowledges to and for the benefit of the [name of the Recipient] and the State Water Board that it understands the goods and services under this contract are being funded with federal monies and have statutory requirements commonly known as “Build America, Buy America;” that requires all of the iron and steel, manufactured products, and construction materials used in the project to be produced in the United States (“Build America, Buy America Requirements”) including iron and steel, manufactured products, and construction materials provided by the contactor pursuant to this contract. The contractor hereby represents and warrants to and for the benefit of the [name of the Recipient] and the State Water Board (a) the contractor has reviewed and understands the Build America, Buy America Requirements, (b) all of the iron and steel, manufactured products, and construction materials used in the project will be and/or have been produced in the United States in a manner that complies with the Build America, Buy America Requirements, unless a waiver of the requirements is approved, and (c) the contractor will provide any further verified information, certification or assurance of compliance with this paragraph, or information necessary to support a waiver of the Build America, Buy America Requirements, as may be requested by the [name of the Recipient] and the State Water Board. Notwithstanding any other provision of this Agreement, any failure to comply with this paragraph by the contractor shall permit the [name of the Recipient] and the State Water Board to recover as damages against the contractor any loss, expense, or cost (including without limitation attorney’s fees) incurred by the [name of the Recipient] and the State Water Board resulting from any such failure (including without limitation any impairment or loss of funding, whether in whole or in part, from the State Water Board or any damages owed to the State Water Board by the [name of the Recipient]). If the contractor has no direct contractual privity with the State Water Board, as a lender or awardee to the [name of the Recipient] for the funding of its project, the [name of the Recipient] and the contractor agree that the State Water Board is a third-party beneficiary and neither this paragraph (nor any other provision of this Agreement necessary to give this paragraph force or effect) shall be amended or waived without the prior written consent of the State Water Board.”

The Recipient must inform the State Water Board immediately of any information regarding a violation of the foregoing.

City Council 26 – 50 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit D
EXHIBIT D – SPECIAL CONDITIONS
Executive Order N-6-22 — Russian Sanctions.

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State Water Board determine Recipient is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this Agreement. The State Water Board shall provide Recipient advance written notice of such termination, allowing Recipient at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State Water Board.

The Recipient represents that the Recipient is not a target of economic sanctions imposed in response to Russia’s actions in Ukraine imposed by the United States government or the State of California. The Recipient is required to comply with the economic sanctions imposed in response to Russia’s actions in Ukraine, including with respect to, but not limited to, the federal executive orders identified in California Executive Order N-6-22, located at https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-RussiaUkraine-Executive-Order.pdf and the sanctions identified on the United States Department of the Treasury website (https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-andcountry-information/ukraine-russia-related-sanctions). The Recipient is required to comply with all applicable reporting requirements regarding compliance with the economic sanctions, including, but not limited to, those reporting requirements set forth in California Executive Order N-6-22 for all Recipients with one or more agreements with the State of California with an aggregated value of Five Million Dollars ($5,000,000) or more. Notwithstanding any other provision in this Agreement, failure to comply with the economic sanctions and all applicable reporting requirements may result in termination of this Agreement.

For Recipients with an aggregated agreement value of Five Million Dollars ($5,000,000) or more with the State of California, reporting requirements include, but are not limited to, information related to steps taken in response to Russia’s actions in Ukraine, including but not limited to:

1. Desisting from making any new investments or engaging in financial transactions with Russian institutions or companies that are headquartered or have their principal place of business in Russia;

2. Not transferring technology to Russia or companies that are headquartered or have their principal place of business in Russia; and

3. Direct support to the government and people of Ukraine.

City Council 26 – 51 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit E
EXHIBIT E – PAYMENT SCHEDULE
See the attached preliminary Payment Schedule. The final Payment Schedule will be forwarded to the Recipient after all disbursements have been paid and construction of the Project has been completed.

City Council 26 – 52 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit F
EXHIBIT F – TAX CERTIFICATE
F.1 Purpose.

The purpose of this Exhibit F is to establish the reasonable expectations of the Recipient regarding the Project and the Project Funds, and is intended to be and may be relied upon for purposes of Sections 103, 141 and 148 of the Code and as a certification described in Section 1.148-2(b)(2) of the Treasury Regulations. This Exhibit F sets forth certain facts, estimates and circumstances which form the basis for the Recipient’s expectation that neither the Project nor the Bond Funded Portion of the Project Funds is to be used in a manner that would cause the Obligation to be classified as “arbitrage bonds” under Section 148 of the Code or “private activity bonds” under Section 141 of the Code.

F.2 Tax Covenant.

The Recipient agrees that it will not take or authorize any action or permit any action within its reasonable control to be taken, or fail to take any action within its reasonable control, with respect to the Project which would result in the loss of the exclusion of interest on the Bonds from gross income for federal income tax purposes under Section 103 of the Code.

F.3 Governmental Unit.

The Recipient is a state or local governmental unit as defined in Section 1.103-1 of the Treasury Regulations or an instrumentality thereof (a "Governmental Unit") and is not the federal government or any agency or instrumentality thereof.

F.4 Financing of a Capital Project.

The Recipient will use the Project Funds to finance capital expenditures it has incurred or will incur for the construction, reconstruction, installation or acquisition of the Project in accordance with the terms of this Agreement. Such expenditures shall not have previously been financed with the proceeds of any other issue of indebtedness except for interim financing by the Recipient, the date of maturity, prepayment or redemption of which is within thirty (30) days of the date of disbursement of Project Funds under this Agreement. All Project Funds shall be allocated to expenditures by the Recipient within thirty (30) days of the date of disbursement, including (if at all) Project Funds allocated to repay interim financing of the Recipient. For purposes of this Section F.4, “interim financing” means notes, commercial paper, loans, lines of credit and other forms of shortterm borrowing.

F.5 Ownership and Operation of Project.

The Recipient exclusively owns and, except as provided in Section F.12 hereof, operates the Project.

F.6 Temporary Period.

The Recipient reasonably expects that at least eighty-five percent (85%) of the Bond Funded Portion of the Project Funds will be allocated to expenditures for the Project within three (3) years of the earlier of the effective date of this Agreement or the date the Bonds are issued ("Applicable Date"). The Recipient has incurred, or reasonably expects that it will incur within six (6) months of the Applicable Date, a substantial binding obligation (i.e., not subject to contingencies within the control of the Recipient or a related party) to a third party to expend at least five percent (5%) of the Bond Funded Portion of the Project Funds on Project Costs. The completion of acquisition, construction, improvement and equipping of the Project and the allocation of the Bond Funded Portion of the Project Funds to Project Costs will proceed with due diligence.

F.7 Working Capital.

City Council 26 – 53 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit F
No operational expenditures of the Recipient or any related entity are being, have been or will be financed or refinanced with Project Funds.

F.8 Expenditure of Proceeds.

The Bond Funded Portion of the Project Funds shall be used exclusively for the following purposes: (i) Reimbursement Expenditures (as defined in Section F.20 below), (ii) Preliminary Expenditures (as defined in Section F.20 below) in an aggregate amount not exceeding twenty percent (20%) of the Bond Funded Portion of the Project Funds, (iii) capital expenditures relating to the Project originally paid by the Recipient on or after the date hereof, (iv) interest on the Obligation through the later of three (3) years after the Applicable Date or one (1) year after the Project is placed in service, and (v) initial operating expenses directly associated with the Project in the aggregate amount not more than five percent (5%) of the Bond Funded Portion of the Project Funds.

F.9 Private Use and Private Payments.

No portion of the Project Funds or the Project is being, has been or will be used in the aggregate for any activities that constitute a Private Use (as defined below). No portion of the principal of or interest with respect to the Payments will be secured by any interest in property (whether or not the Project) used for a Private Use or in payments in respect of property used for a Private Use, or will be derived from payments in respect of property used for a Private Use. "Private Use" means any activity that constitutes a trade or business that is carried on by persons or entities, other than a Governmental Unit. The leasing of the Project or the access by or the use of the Project by a person or entity other than a Governmental Unit on a basis other than as a member of the general public shall constitute a Private Use. Use by or on behalf of the State of California or any of its agencies, instrumentalities or subdivisions or by any local Governmental Unit and use as a member of the general public will be disregarded in determining whether a Private Use exists. Use under an arrangement that conveys priority rights or other preferential benefits is generally not use on the same basis as the general public. Arrangements providing for use that is available to the general public at no charge or on the basis of rates that are generally applicable and uniformly applied do not convey priority rights or other preferential benefits. For this purpose, rates may be treated as generally applicable and uniformly applied even if (i) different rates apply to different classes of users, such as volume purchasers, if the differences in rates are customary and reasonable; or (ii) a specially negotiated rate arrangement is entered into, but only if the user is prohibited by federal law from paying the generally applicable rates, and the rates established are as comparable as reasonably possible to the generally applicable rates. An arrangement that does not otherwise convey priority rights or other preferential benefits is not treated, nevertheless, as general public use if the term of the use under the arrangement, including all renewal options, is greater than 200 days. For this purpose, a right of first refusal to renew use under the arrangement is not treated as a renewal option if (i) the compensation for the use under the arrangement is redetermined at generally applicable, fair market value rates that are in effect at the time of renewal; and (ii) the use of the financed property under the same or similar arrangements is predominantly by natural persons who are not engaged in a trade or business.

F.10 No Sale, Lease or Private Operation of the Project.

The Project (or any portion thereof) will not be sold or otherwise disposed of, in whole or in part, to any person who is not a Governmental Unit prior to the final maturity date of the Obligation. The Project will not be leased to any person or entity that is not a Governmental Unit prior to the final maturity date of the Obligation. Except as permitted under Section F.12 hereof, the Recipient will not enter any contract or arrangement or cause or permit any contract or arrangement to be entered with persons or entities that are not Governmental Units if that contract or arrangement would confer on such persons or entities any right to use the Project on a basis different from the right of members of the general public. The contracts or arrangements contemplated by the preceding sentence include but are not limited to management contracts, take or pay contracts or put or pay contracts, and capacity guarantee contracts.

F.11 No Disproportionate or Unrelated Use.

No portion of the Project Funds or the Project is being, has been, or will be used for a Private Use that is unrelated or disproportionate to the governmental use of the Project Funds.

City Council 26 – 54 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit F
F.12 Management and Service Contracts.

The Recipient represents that, as of the date hereof, it is not a party to any contract, agreement or other arrangement with any persons or entities engaged in a trade or business (other than Governmental Units) that involve the management or operation of property or the provision of services at or with respect to the Project that does not comply with the standards of the Treasury Regulations, or Revenue Procedure 2017-13, as applicable. The Recipient represents that it will not be party to any such contract, agreement or arrangement with any person or entity that is not a Governmental Unit for the management of property or the provision of services at or with respect to the Project, while the Obligation (including any obligation or series thereof issued to refund the Obligation, as the case may be) is outstanding, except: (a) with respect to any contract, agreement or arrangement that does not constitute “private business use” of the Project under Code §141(b), or (b) with respect to any contract, agreement or arrangement that complies with (i) Revenue Procedure 97-13, 1997-1 C.B. 632, as amended by Revenue Procedure 2001-39, 2001-2 C.B. 38, and as amplified by Notice 2014-67, with respect to contracts entered into before August 18, 2017 and not materially modified or extended after August 18, 2017, or (ii) Revenue Procedure 2017-13, with respect to contracts entered into or materially modified or extended on or after August 18, 2017, or (c) with respect to any contract, agreement or arrangement that does not give rise to use of the Bond Funded Portion of the Project Funds or the Project by a non-Governmental Unit of more than the amount of such non-qualified use permitted by the Code, or (d) in the event that the Recipient receives an opinion of counsel, satisfactory to the State Water Board and the Bank and expert in the issuance of state and local government bonds the interest on which is excluded from gross income under Section 103 of the Code (“Nationally-Recognized Bond Counsel”), that such contract, agreement or arrangement will not adversely affect the exclusion of the interest on the Obligation from gross income for federal income taxation purposes.

F.13 No Disposition of Financed Property.

As of the date hereof, the Recipient does not expect to sell or otherwise dispose of any portion of the Project, in whole or in part, prior to the final maturity date of the Obligation.

F.14 Useful Life of Project.

As of the date hereof, the Recipient reasonably expects that the economic useful life of the Project, commencing at Project Completion, will be at least equal to the term of this Agreement, as set forth in Exhibit A hereto.

F.15 Payments.

Payments generally are expected to be derived from assessments, taxes, fees, charges or other current Revenues of the Recipient in each year, and such current Revenues are expected to equal or exceed the Payments during each payment period. Any amounts accumulated in a sinking fund or bona fide debt service fund to pay Payments (whether or not deposited to a fund or account established by the Recipient) will be disbursed to pay Payments within thirteen months of the initial date of accumulation or deposit. Any such fund used for the payment of Payments will be depleted once a year except for a reasonable carryover amount not exceeding the greater of earnings on such fund or one-twelfth of the Payments in either case for the immediately preceding year.

F.16 No Other Replacement Proceeds.

The Recipient will not use any of the Bond Funded Portion of the Project Funds to replace or substitute other funds of the Recipient that were otherwise to be used to finance the Project or which are or will be used to acquire securities, obligations or other investment property reasonably expected to produce a yield that is materially higher than the yield on the Bonds.

F.17 No Sinking or Pledged Fund.

Except as set forth in Section F.18 below, the Recipient will not create or establish any sinking fund or pledged fund which will be used to pay Payments on the Obligation within the meaning of Section 1.148-1(c) of the Treasury Regulations. If any sinking fund or pledged fund comes into being with respect to the Obligation before City Council 26 – 55 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit F
the Obligation has been fully retired which may be used to pay the Payments, the Recipient will invest such sinking fund and pledged fund moneys at a yield that does not exceed the yield on the Bonds.

F.18 Reserve Amount.

The State Water Board requires that the Recipient maintain and fund a separate account in an amount equal to one (1) year of debt service with respect to the Obligation (the “Reserve Amount”) as set forth in Exhibit B. The Recipient represents that the Reserve Amount is and will be available to pay debt service with respect to the Obligation, if and when needed. The Reserve Amount consists solely of revenues of the Recipient and does not include any proceeds of any obligations the interest on which is excluded from gross income for federal income tax purposes or investment earnings thereon. The aggregate of the Reserve Amount, up to an amount not exceeding the lesser of (i) ten percent of the aggregate principal amount of the Obligation, (ii) the maximum annual debt service with respect to the Obligation, or (iii) 125 percent of the average annual debt service with respect to the Obligation, will be treated as a reasonably required reserve fund.

F.19 Reimbursement Resolution.

The “reimbursement resolution” adopted by the Recipient is incorporated herein by reference.

F.20 Reimbursement Expenditures.

Reimbursements are disallowed, except as specifically authorized in Exhibit B or Exhibit D of this Agreement. To the extent so authorized, a portion of the Bond Funded Portion of the Project Funds may be applied to reimburse the Recipient for Project Costs paid before the date hereof, so long as the Project Cost was (i) not paid prior to sixty (60) days before the Recipient’s adoption of a declaration of official intent to finance the Project, (ii) not paid more than eighteen (18) months prior to the date hereof or the date the Project was placed-in-service, whichever is later, and (iii) not paid more than three (3) years prior to the date hereof (collectively, “Reimbursement Expenditures”), unless such cost is attributable to a “preliminary expenditure.” Preliminary expenditure for this purpose means architectural, engineering, surveying, soil testing and similar costs incurred prior to the commencement of construction or rehabilitation of the Project, but does not include land acquisition, site preparation and similar costs incident to the commencement of acquisition, construction or rehabilitation of the Project. Preliminary expenditures may not exceed 20% of the Bond Funded Portion of the Project Funds.

F.21 Change in Use of the Project.

The Recipient reasonably expects to use all of the Bond Funded Portion of the Project Funds and the Project for the entire stated term to maturity of the Obligation. Absent an opinion of Nationally-Recognized Bond Counsel to the effect that such use of the Bond Funded Portion of the Project Funds will not adversely affect the exclusion from federal gross income of interest on the Bonds pursuant to Section 103 of the Code, the Recipient will use the Bond Funded Portion of the Project Funds and the Project solely as set forth in this Agreement.

F.22 Rebate Obligations.

If the Recipient satisfies the requirements of one of the spending exceptions to rebate specified in Section 1.148-7 of the Treasury Regulations, amounts earned from investments, if any, acquired with the Bond Funded Portion of the Project Funds will not be subject to the rebate requirements imposed under Section 148(f) of the Code. If the Recipient fails to satisfy such requirements for any period, it will notify the State Water Board and the Bank immediately and will comply with the provisions of the Code and the Treasury Regulations at such time, including the payment of any rebate amount calculated by the State Water Board or the Bank.

F.23 No Federal Guarantee.

The Recipient will not directly or indirectly use any of the Bond Funded Portion of the Project Funds in any manner that would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code, taking into account various exceptions including any guarantee related to investments during an initial temporary period until needed for the governmental purpose of the Bonds, investments as part of a bona fide debt City Council 26 – 56 5/16/2023
City of Santa Ana
Agreement No.: D2202006
Project No.: 3010038-002C

Exhibit F
service fund, investments of a reasonably required reserve or replacement fund, investments in bonds issued by the United States Treasury, investments in refunding escrow funds or certain other investments permitted under the Treasury Regulations.

F.24 Amendments.

The provisions in this Exhibit may be amended, modified or supplemented at any time to reflect changes in the Code upon obtaining written approval of the State Water Board and the Bank and an opinion of NationallyRecognized Bond Counsel to the effect that such amendment, modification or supplement will not adversely affect the exclusion from federal gross income of interest on the Bonds pursuant to Section 103 of the Code.

F.25 Reasonable Expectations.

The Recipient warrants that, to the best of its knowledge, information and belief, and based on the facts and estimates as set forth in the tax covenants in this Exhibit, the expectations of the Recipient as set forth in this Exhibit are reasonable. The Recipient is not aware of any facts or circumstances that would cause it to question the accuracy or reasonableness of any representation made in the provisions in this Exhibit.

F.26 Assignment.

The Recipient consents to any pledge, sale, or assignment to the Bank or a trustee for the benefit of the owners of the Bonds, if any, at any time of any portion of the State Water Board's estate, right, title, and interest and claim in, to and under this Agreement and the right to make all related waivers and agreements in the name and on behalf of the State Water Board, as agent and attorney-in-fact, and to perform all other related acts which are necessary and appropriate under this Agreement, if any, and the State Water Board's estate, right, title, and interest and claim in, to and under this Agreement to Payments (but excluding the State Water Board's rights to Additional Payments and to notices, opinions and indemnification under each Obligation).

City Council 26 – 57 5/16/2023
Public Works Agency
www.santa-ana.org/public-works
Item # 27
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 16, 2023
TOPIC: Water Supply Assessment for Cabrillo Town Center Project

AGENDA TITLE
Adopt a Resolution Approving the Water Supply Assessment for the Cabrillo Town Center Project Located at 1901 East Fourth Street

RECOMMENDED ACTION
Adopt a resolution approving the Water Supply Assessment for the Cabrillo Town Center project located at 1901 East Fourth Street.

DISCUSSION
In June 2021, the City of Santa Ana filed its 2020 Urban Water Management Plan (UWMP) (Exhibit 1) with the California Department of Water Resources in accordance with California Water Code Section 10610, et seq., which requires UWMPs to be filed every five years. The UWMP, among its several functions, estimates water supply sufficiency by forecasting the City’s water supply capacity and anticipated consumer water demand to ensure that available water supply will meet or exceed demand.

UWMPs are point-in-time estimates that, by nature, cannot fully capture future effects of large changes unknown at the time it was developed. For this reason, California Water Code Section 10910 requires large projects be reviewed individually for water supply sufficiency via a Water Supply Assessment document. The City must concur that adequate water supply exists for residential development projects consisting of 500 dwelling units or more before development may proceed.

The proposed development is a mixed-use project that includes commercial space and up to 507 residential dwelling units, and therefore requires a Water Supply Assessment (Exhibit 2). Staff has reviewed the project’s Water Supply Assessment, concluded that the City has adequate supply to service the project upon its completion, and recommends that the City Council adopt a resolution approving the assessment (Exhibit 3).

This is the first Water Supply Assessment brought for the City Council’s specific review and consideration since the completion of the 2020 UWMP. City staff will evaluate future Water Supply Assessments by adjusting the demand projections of the UWMP City Council 27 – 1 5/16/2023
Water Supply Assessment for Cabrillo Town Center Project May 16, 2023

for the anticipated demand of this project to determine the unutilized water supply available for additional development. When the future revised 2025 UWMP is filed again, any current or projected water demand from this project will be incorporated into the new baseline consumer water demand projections.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. City of Santa Ana 2020 Urban Water Management Plan

2. Water Supply Assessment for the Cabrillo Town Center Project

3. Resolution Approving the Water Supply Assessment
Submitted By: Nabil Saba, Executive Director of Public Works Approved By: Kristine Ridge, City Manager
City Council 27 – 2 5/16/2023
2020 Urban Water
Management Plan
Final
June 2021 City Council 27 – 3 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
2020 URBAN WATER

MANAGEMENT PLAN
Prepared for:

City of Santa Ana
Public Works Agency
Water Resources Division
20 Civic Center Plaza
Santa Ana, California 92701
Prepared by:

Arcadis U.S., Inc.
320 Commerce
Suite 200
Irvine
California 92602
Tel 714 730 9052
Fax 714 730 9345
Our Ref:
30055240
Date:

June 2021
Sarina Sriboonlue, P.E.

Project Manager
City Council 27 – 4 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
i

CONTENTS
Acronyms and Abbreviations ....................................................................................................................... ix Executive Summary ................................................................................................................................ ES-1 1 Introduction and UWMP Overview ..................................................................................................... 1-1 Overview of Urban Water Management Plan Requirements ...................................................... 1-1 UWMP Organization .................................................................................................................... 1-2 2 UWMP Preparation ............................................................................................................................ 2-1 Individual Planning and Compliance ........................................................................................... 2-1 Coordination and Outreach ......................................................................................................... 2-2

2.2.1 Integration with Other Planning Efforts .................................................................................. 2-2

2.2.2 Wholesale and Retail Coordination ........................................................................................ 2-3

2.2.3 Public Participation ................................................................................................................. 2-4 3 System Description ............................................................................................................................ 3-1 Agency Overview ......................................................................................................................... 3-1

3.1.1 Formation and Purpose .......................................................................................................... 3-1

3.1.2 City Council ............................................................................................................................ 3-3 Water Service Area and Facilities ............................................................................................... 3-3

3.2.1 Water Service Area ................................................................................................................ 3-3

3.2.2 Water Facilities ....................................................................................................................... 3-4 Climate ......................................................................................................................................... 3-6 Population, Demographics, and Socioeconomics ....................................................................... 3-7

3.4.1 Population .............................................................................................................................. 3-7

3.4.2 Demographics and Socioeconomics ...................................................................................... 3-7

3.4.3 CDR Projection Methodology ................................................................................................. 3-8 Land Uses .................................................................................................................................... 3-8

3.5.1 Current Land Uses ................................................................................................................. 3-8

3.5.2 Projected Land Uses .............................................................................................................. 3-9 4 Water Use Characterization ............................................................................................................... 4-1 Water Use Overview .................................................................................................................... 4-1 Past and Current Water Use ....................................................................................................... 4-1 City Council 27 – 5 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
ii
Water Use Projections ................................................................................................................. 4-3

4.3.1 Water Use Projection Methodology........................................................................................ 4-3

4.3.1.1 Weather Variability and Long-Term Climate Change Impacts ....................................... 4-5

4.3.2 25-Year Water Use Projection ............................................................................................... 4-5

4.3.2.1 Water Use Projections for 2021-2025 ............................................................................ 4-6

4.3.2.2 Water Use Projections for 2025-2045 ............................................................................ 4-6

4.3.2.3 Water Use Projections for Lower Income Households .................................................. 4-8 Water Loss ................................................................................................................................. 4-10 5 Conservation Target Compliance..................................................................................................... 5-13 Baseline Water Use ................................................................................................................... 5-13

5.1.1 Ten to 15-Year Baseline Period (Baseline GPCD) .............................................................. 5-14

5.1.2 Five-Year Baseline Period (Target Confirmation) ................................................................ 5-14

5.1.3 Service Area Population ....................................................................................................... 5-14 SBx7-7 Water Use Targets ........................................................................................................ 5-14

5.2.1 SBx7-7 Target Methods ....................................................................................................... 5-15

5.2.2 2020 Targets and Compliance ............................................................................................. 5-15 Orange County 20x2020 Regional Alliance .............................................................................. 5-17 6 Water Supply Characterization .......................................................................................................... 6-1 Water Supply Overview ............................................................................................................... 6-1 Imported Water ............................................................................................................................ 6-4

6.2.1 Colorado River Supplies ........................................................................................................ 6-5

6.2.2 State Water Project Supplies ................................................................................................. 6-7

6.2.3 Storage ................................................................................................................................. 6-11

6.2.4 Planned Future Sources ...................................................................................................... 6-12 Groundwater .............................................................................................................................. 6-12

6.3.1 Historical Groundwater Production ...................................................................................... 6-13

6.3.2 Basin Characteristics ........................................................................................................... 6-14

6.3.3 Sustainable Groundwater Management Act ........................................................................ 6-17

6.3.4 Basin Production Percentage ............................................................................................... 6-17

6.3.4.1 2020 OCWD Groundwater Reliability Plan .................................................................. 6-19

6.3.4.2 OCWD Engineer’s Report ............................................................................................ 6-19 City Council 27 – 6 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
iii

6.3.5 Recharge Management ........................................................................................................ 6-20

6.3.6 MET Groundwater Replenishment Program ........................................................................ 6-20

6.3.7 MET Conjunctive Use Program / Cyclic Storage Program with OCWD .............................. 6-21

6.3.8 Overdraft Conditions ............................................................................................................ 6-21

6.3.9 Planned Future Sources ...................................................................................................... 6-22 Surface Water ............................................................................................................................ 6-22

6.4.1 Existing Sources................................................................................................................... 6-22

6.4.2 Planned Future Sources ...................................................................................................... 6-22 Stormwater ................................................................................................................................ 6-23

6.5.1 Existing Sources................................................................................................................... 6-23

6.5.2 Planned Future Sources ...................................................................................................... 6-23 Wastewater and Recycled Water .............................................................................................. 6-23

6.6.1 Agency Coordination ............................................................................................................ 6-23

6.6.1.1 OCWD Green Acres Project ........................................................................................ 6-23

6.6.1.2 OCWD Groundwater Replenishment System .............................................................. 6-24

6.6.2 Wastewater Description and Disposal ................................................................................. 6-24

6.6.3 Current Recycled Water Uses .............................................................................................. 6-26

6.6.4 Projected Recycled Water Uses .......................................................................................... 6-26

6.6.5 Potential Recycled Water Uses ............................................................................................ 6-28

6.6.6 Optimization Plan ................................................................................................................. 6-28 Desalination Opportunities ........................................................................................................ 6-29

6.7.1 Ocean Water Desalination ................................................................................................... 6-30

6.7.2 Groundwater Desalination .................................................................................................... 6-31 Water Exchanges and Transfers ............................................................................................... 6-31

6.8.1 Existing Exchanges and Transfers ....................................................................................... 6-31

6.8.2 Planned and Potential Exchanges and Transfers ................................................................ 6-32 Summary of Future Water Projects ........................................................................................... 6-33

6.9.1 City Initiatives ....................................................................................................................... 6-33

6.9.2 Regional Initiatives ............................................................................................................... 6-33 Energy Intensity.................................................................................................................... 6-35

6.10.1 Water Supply Energy Intensity ......................................................................................... 6-35 City Council 27 – 7 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
iv

6.10.1.1 Operational Control and Reporting Period ............................................................... 6-38

6.10.1.2 Volume of Water Entering Processes ...................................................................... 6-38

6.10.1.3 Energy Consumption and Generation ...................................................................... 6-38

6.10.2 Wastewater and Recycled Water Energy Intensity .......................................................... 6-38

6.10.2.1 Operational Control and Reporting Period ............................................................... 6-41

6.10.2.2 Volume of Wastewater Entering Processes ............................................................. 6-41

6.10.2.3 Energy Consumption and Generation ...................................................................... 6-41

6.10.3 Key Findings and Next Steps ........................................................................................... 6-41 7 Water Service Reliability and Drought Risk Assessment .................................................................. 7-1 Water Service Reliability Overview .............................................................................................. 7-1 Factors Affecting Reliability ......................................................................................................... 7-3

7.2.1 Climate Change and the Environment ................................................................................... 7-3

7.2.2 Regulatory and Legal ............................................................................................................. 7-4

7.2.3 Water Quality .......................................................................................................................... 7-4

7.2.3.1 Imported Water ............................................................................................................... 7-5

7.2.3.2 Groundwater ................................................................................................................... 7-5

7.2.4 Locally Applicable Criteria ...................................................................................................... 7-8 Water Service Reliability Assessment ......................................................................................... 7-8

7.3.1 Normal Year Reliability ........................................................................................................... 7-8

7.3.2 Single Dry Year Reliability ...................................................................................................... 7-9 DWR Submittal Table 7-3 Retail: Single Dry Year Supply and Demand Comparison ................................... 7-10

7.3.3 Multiple Dry Year Reliability ................................................................................................. 7-10 Management Tools and Options ............................................................................................... 7-12 Drought Risk Assessment ......................................................................................................... 7-13

7.5.1 DRA Methodology ................................................................................................................ 7-13

7.5.2 Total Water Supply and Use Comparison ............................................................................ 7-15

7.5.3 Water Source Reliability ....................................................................................................... 7-17 8 Water Shortage Contingency Planning .............................................................................................. 8-1 Layperson Description ................................................................................................................. 8-1 Overview of the WSCP ................................................................................................................ 8-1 Summary of Water Shortage Response Strategy and Required DWR Tables ........................... 8-2 City Council 27 – 8 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
v
9 Demand Management Measures ....................................................................................................... 9-1 Demand Management Measures for Retail Suppliers ................................................................. 9-1

9.1.1 Water Waste Prevention Ordinances ..................................................................................... 9-1

9.1.2 Metering ................................................................................................................................. 9-3

9.1.3 Conservation Pricing .............................................................................................................. 9-3

9.1.4 Public Education and Outreach .............................................................................................. 9-4

9.1.5 Programs to Assess and Manage Distribution System Real Loss ....................................... 9-10

9.1.6 Water Conservation Program Coordination and Staffing Support ....................................... 9-11

9.1.7 Other Demand Management Measures (DMMs) ................................................................. 9-11

9.1.7.1 Residential Program ..................................................................................................... 9-11

9.1.7.2 Commercial, Industrial and Institutional (CII) Programs .............................................. 9-12

9.1.7.3 Landscape Programs ................................................................................................... 9-12 Implementation over the Past Five Years.................................................................................. 9-14 Water Use Objectives (Future Requirements) .......................................................................... 9-15 10 Plan Adoption, Submittal, and Implementation ................................................................................ 10-1 Overview .............................................................................................................................. 10-1 Agency Coordination ............................................................................................................ 10-2 Public Participation ............................................................................................................... 10-3 UWMP Submittal .................................................................................................................. 10-3 Amending the Adopted UWMP or WSCP ............................................................................ 10-3 11 References ....................................................................................................................................... 11-1 TABLES
Table 2-1: Plan Identification...................................................................................................................... 2-1 Table 2-2: Supplier Identification ............................................................................................................... 2-2 Table 2-3 Retail: Water Supplier Information Exchange ............................................................................ 2-4 Table 3-1: Retail Only: Public Water Systems ........................................................................................... 3-6 Table 3-2: Retail: Population - Current and Projected ............................................................................... 3-7 Table 3-3: City of Santa Ana Service Area Dwelling Units by Type .......................................................... 3-8 Table 3-4: Buildout Potential of the City ................................................................................................... 3-12 City Council 27 – 9 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
vi
Table 4-1 Retail: Demands for Potable and Non-Potable Water – Actual ................................................. 4-2 Table 4-2: Water Use Projections for 2021 to 2025 ................................................................................... 4-6 Table 4-3: Retail: Use for Potable and Non-Potable Water – Projected .................................................... 4-7 Table 4-4 Retail: Total Water Use (Potable and Non-Potable) .................................................................. 4-8 Table 4-5 Retail Only: Inclusion in Water Use Projections ....................................................................... 4-8 Table 4-6: SCAG 6th Cycle Household Allocation Based on Median Household Income ........................ 4-9 Table 4-7: Projected Water Use Needed for Low Income Households (AF) ........................................... 4-10 Table 4-8: Retail: Last Five Years of Water Loss Audit Reporting .......................................................... 4-11 Table 5-1: Baselines and Targets Summary ............................................................................................ 5-16 Table 5-2: 2020 Compliance .................................................................................................................... 5-17 Table 6-1: Retail: Water Supplies – Actual ................................................................................................ 6-2 Table 6-2: Retail: Water Supplies – Projected ........................................................................................... 6-3 Table 6-3: MET SWP Program Capabilities ............................................................................................... 6-9 Table 6-4: Retail: Groundwater Volume Pumped .................................................................................... 6-14 Table 6-5: Management Actions Based on Changes in Groundwater Storage ....................................... 6-18 Table 6-6: Retail: Wastewater Collected Within Service Area in 2020 ................................................... 6-25 Table 6-7: Retail: Recycled Water Direct Beneficial Uses Within Service Area ...................................... 6-27 Table 6-8: Retail: 2015 UWMP Recycled Water Use Projection Compared to 2020 Actual ................... 6-28 Table 6-9: Recommended Energy Intensity – Multiple Water Delivery Products .................................... 6-36 Table 6-10: Recommended Energy Intensity – Wastewater & Recycled Water ..................................... 6-39 Table 7-1 Retail: Basis of Water Year Data (Reliability Assessment) ....................................................... 7-2 Table 7-2: Retail: Normal Year Supply and Demand Comparison ............................................................ 7-9 Table 7-3: Retail: Single Dry Year Supply and Demand Comparison ..................................................... 7-10 Table 7-4: Retail: Multiple Dry Years Supply and Demand Comparison ................................................. 7-11 Table 7-5: Five-Year Drought Risk Assessment Tables to Address Water Code Section 10635(b) ....... 7-15 Table 8-1: Water Shortage Contingency Plan Levels ................................................................................ 8-4 Table 9-1: Water Rates Effective January 1, 2020 .................................................................................... 9-3 Table 9-2: Water Tier Allocations Effective January 1, 2020 ..................................................................... 9-4 Table 9-3: City of Santa Ana Water Conservation Efficiency Program Participation .............................. 9-14 Table 9-4: MET Programs to Assist in Meeting WUO ............................................................................. 9-16 Table 9-5: CII BMP Implementation Programs Offered ........................................................................... 9-18 City Council 27 – 10 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
vii
Table 10-1: External Coordination and Outreach .................................................................................... 10-1 Table 10-2: Retail: Notification to Cities and Counties ............................................................................ 10-2

FIGURES
Figure 3-1: Regional Location of City of Santa Ana ................................................................................... 3-2 Figure 3-2: City of Santa Ana Water Service Area .................................................................................... 3-4 Figure 3-3: Water System Facilities ........................................................................................................... 3-5 Figure 3-4: Special Planning Areas of the City of Santa Ana .................................................................. 3-11 Figure 4-1: Water Use Projection Methodology Diagram .......................................................................... 4-4 Figure 4-2: Water Loss Audit for FY 2015/16 to FY 2019/20 ................................................................... 4-11 Figure 4-3: Water Loss Performance Indicators for FY 2015/16 to FY 2019/20 ..................................... 4-12 Figure 6-1: City’s Projected Water Supply Sources (AF) ........................................................................... 6-4 Figure 6-2: Map of the OC Basin ............................................................................................................. 6-16 Figure 8-1: UWMP Overview ..................................................................................................................... 8-2 Figure 9-1: Youth Outreach Flyer .............................................................................................................. 9-5 Figure 9-2: Outreach and Education Material ............................................................................................ 9-5 Figure 9-3: Outreach Event Photo 1 .......................................................................................................... 9-6 Figure 9-4: Outreach Event Photo 2 .......................................................................................................... 9-6 Figure 9-5: Outreach Event Photo 3 .......................................................................................................... 9-7 Figure 9-6: Outreach Event Photo 4 .......................................................................................................... 9-7 Figure 9-7: Landscape Transformation Program Outreach Flyer, Page 1 ................................................ 9-8 Figure 9-8: Landscape Transformation Program Outreach Flyer, Page 2 ................................................ 9-8 City Council 27 – 11 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
viii

APPENDICES
Appendix A. UWMP Water Code Checklist
Appendix B. DWR Standardized Tables
Appendix C. Reduced Delta Reliance
Appendix D. SBx7-7 Verification and Compliance Forms
Appendix E. 2021 OC Water Demand Forecast for MWDOC and OCWD Technical Memorandum Appendix F. AWWA Water Loss Audits
Appendix G. 2017 Basin 8-1 Alternative
Appendix H. Water Shortage Contingency Plan
Appendix I. Water Use Efficiency Implementation Report
Appendix J. Demand Management Measures
Appendix K. Notice of Public Hearing
Appendix L. Adopted UWMP and WSCP Resolutions
City Council 27 – 12 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
ix

ACRONYMS AND ABBREVIATIONS
% Percent
20x2020 20% water use reduction in GPCD by year 2020
ADU Accessory Dwelling Unit
Act Urban Water Management Planning Act of 1983
AF Acre-Feet
AFY Acre-Feet per Year
AWWA American Water Works Association
BEA Basin Equity Assessment
Biops Biological Opinions
BPP Basin Production Percentage
CCC California Coastal Commission
CDR Center for Demographic Research at California State Fullerton CEC Constituents of Emerging Concern
CEE Consortium for Energy Efficiency
CII Commercial/Industrial/Institutional
CIP Capital Improvement Program
City City of Westminster
CPTP Coastal Pumping Transfer Program
CRA Colorado River Aqueduct
CTE Career Technical Education
CUP Conjunctive Use Program
CVP Central Valley Project
DAC Disadvantaged Communities
DCP Delta Conveyance Project
DDW California State Division of Drinking Water
Delta Sacramento-San Joaquin River Delta
DRA Drought Risk Assessment
DMM Demand Management Measure
DOF Department of Finance
DVL Diamond Valley Lake
DWR Department of Water Resources
FIRO Forecast Informed Reservoir Operations
FY Fiscal Year
GAP Green Acres Project
GHG Greenhouse Gas
GPCD Gallons per Capita per Day
gpf Gallons per Flush
GSA Groundwater Sustainability Agency
City Council 27 – 13 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
x
GSP Groundwater Sustainability Plan
GWRS Groundwater Replenishment System
GWRSFE Groundwater Replenishment System Final Expansion H2O2 Hydrogen Peroxide
HECW High Efficiency Clothes Washer
HEN High Efficiency Nozzle
HET High Efficiency Toilet
HOA Home Owners Association
IPR Indirect Potable Reuse
IRP Integrated Water Resources Plan
JADU Junior Accessory Dwelling Unit
kWh Kilowatt-Hour
LRP Local Resources Program
LTFP Long-Term Facilities Plan
MAF Million Acre-Feet
MCL Maximum Contaminant Level
MET Metropolitan Water District of Southern California
MF Microfiltration
MG Million Gallon
MGD Million Gallons per Day
MHI Median Household Income
MNWD Moulton Niguel Water District
MTBE Methyl Tertiary Butyl Ether
MWDOC Municipal Water District of Orange County
MWELO Model Water Use Efficiency Landscape Ordinance
NDMA N-nitrosodimethylamine
NPDES National Pollutant Discharge Elimination System
NRW Non-Revenue Water
OC Orange County
OC Basin Orange County Groundwater Basin
OC San Orange County Sanitation District
OCWD Orange County Water District
ORP On-Site Retrofit Program
PFAS Per- and polyfluoroalkyl substances
PFOA perfluorooctanoic acid
PFOS perfluorooctane sulfanate
Poseidon Poseidon Resources LLC
PPCP Pharmaceuticals and Personal Care Product
PPT Parts Per Trillion
PSA Public Service Announcement
City Council 27 – 14 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
xi
QWEL Qualified Water Efficient Landscaper
RA Replenishment Assessment
RHNA Regional Housing Needs Assessment
RO Reverse Osmosis
RUWMP Regional Urban Water Management Plan
SBx7-7 Senate Bill 7 as part of the Seventh Extraordinary Session SCAB South Coast Air Basin
SCAG Southern California Association of Governments
SCWD South Coast Water District
SMWD Santa Margarita Water District
SDP Seawater Desalination Program
sf Square Feet
STEAM Science Technology Engineering Arts and Mathematics SWP State Water Project
SWRCB California State Water Resources Control Board
TAF Thousand Acre-Feet
TDS Total Dissolved Solids
USBR United States Bureau of Reclamation
UV Ultraviolet
UWMP Urban Water Management Plan
UWMP Act Urban Water Management Planning Act of 1983
VOC Volatile Organic Compound
Water Code California Water Code
WBIC Weather-Based Irrigation Controller
WF-21 Water Factory 21
WSAP Water Supply Allocation Plan
WSCP Water Shortage Contingency Plan
WSIP Water Savings Inventory Program
WUO Water Use Objective
City Council 27 – 15 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
ES-1

EXECUTIVE SUMMARY

INTRODUCTION AND UWMP OVERVIEW
The City of Santa Ana prepared this 2020 Urban Water Management Plan (UWMP) to submit to the California Department of Water Resources (DWR) to satisfy the UWMP Act of 1983 (UWMP Act or Act) and subsequent California Water Code (Water Code) requirements. The City is a retail water supplier that provides water to its residents and other customers using the imported potable water supply obtained from its regional wholesaler, Metropolitan Water District of Southern California (MET), local groundwater from the Orange County Groundwater Basin (OC Basin), and recycled water from the Orange County Water District (OCWD).

UWMPs are comprehensive documents that present an evaluation of a water supplier’s reliability over a long-term (20-25 year) horizon. This 2020 UWMP provides an assessment of the present and future water supply sources and demands within the City’s service area. It presents an update to the 2015 UWMP on the City’s water resource needs, water use efficiency programs, water reliability assessment and strategies to mitigate water shortage conditions. It also presents a new 2020 Water Shortage Contingency Plan (WSCP) designed to prepare for and respond to water shortages. This 2020 UWMP contains all elements to meet compliance of the new requirements of the Act as amended since 2015.

UWMP PREPARATION
The City coordinated the preparation of this 2020 UWMP with other key entities, including MET (regional wholesaler for Southern California and the direct supplier of imported water to the City, Municipal Water District of Orange County ([MWDOC] (regional wholesale supplier for OC)), and OCWD (OC Basin manager and provider of recycled water in north OC). While the City is not a member agency of MWDOC, the City developed this UWMP in conjunction with other MWDOC-led efforts such as population projection from the Center for Demographic Research at California State University Fullerton (CDR).

SYSTEM DESCRIPTION
Governed by a non-partisan seven-member City Council, the City is one of the oldest cities in Orange County, incorporated in 1886 and became an original member agency of the MET on February 27, 1931.

The City’s water service area covers 27.5 square miles and includes the City of Santa Ana and a small neighborhood in the City of Orange, near Tustin Avenue and Fairhaven by the northeast corner of Santa Ana. The City operates ten reservoirs with a storage capacity of 49 million gallons (MG), seven pumping stations, 21 groundwater wells, four pressure regulating stations and seven import water connections and manages 510-mile water mains system with 45,037 service connections.

Situated in the South Coast Air Basin (SCAB), the City’s climate is characterized by Southern California’s “Mediterranean” climate with mild winters, warm summers and moderate rainfall. Regarding land use, the City is predominantly single and multi-family residential community. Moving forward, the City will continue planning for its Regional Housing Needs Assessment (RHNA) allocation and future planned developments beyond 2020 will primarily be multiuse projects, in the ‘focus areas’ identified in the City’s General Plan. The current population of 335,086 is projected to increase by 2.9% over the next 25 years.

City Council 27 – 16 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
ES-2

WATER USE CHARACTERIZATION
Water use within the City’s service area has been relatively stable in the past decade with an annual average of 36,245 AF. Potable and non-potable water use accounts for an average of 99% and 1% of total City water use, respectively. In fiscal year (FY) 2019/20, the City’s water use was 33,240 AF of potable water (groundwater and imported) and 249 AF of direct recycled water for landscape irrigation. In FY 2019-20, the City’s potable water use profile comprised of 65.5% residential use, 24.5% commercial, industrial, and institutional (CII), and 4.0% large landscape/irrigation. Non-revenue water and other uses account for 5.9% of City’s water demand.

Water Use Projections: 5-year and 25-year
The City’s service area is almost completely built-out and is projected to add minimum land use and small population increase. Water demand is likely to increase by 1.2% over the next 5 years. In the longer term, water demand is projected to be stable from 2025 through 2045 (a slight decrease of 0.2% over the 20-year period). The projected potable and non-potable water use for 2045 is 33,578 AF and 249 AF, respectively.

This demand projection considers such factors as current and future demographics, future water use efficiency measures, and long-term weather variability.

CONSERVATION TARGET COMPLIANCE
Retail water suppliers are required to comply with the requirements of Water Conservation Act of 2009, also known as SBx7-7 (Senate Bill 7 as part of the Seventh Extraordinary Session), which was signed into law in 2010 and requires the State of California to reduce urban water use by 20% by 2020 from a 2013 baseline.

The retail water suppliers can comply individually or as a region in collaboration with other retail water suppliers, in order to be eligible for water related state grants and loans. The City is part of the Orange County 20x2020 Regional Alliance created in collaboration with MWDOC, its retail member agencies as well as the Cities of Anaheim and Fullerton. The Alliance was created to assist OC retail agencies in complying with SBx7-7.

The City met its 2020 water use target and is in compliance with SBx7-7; the actual 2020 consumption was 66 gallons per capita per day (GPCD), which is below its 2020 target of 116 GPCD.

WATER SUPPLY CHARACTERIZATION
The City meets all of its demands with a combination of local groundwater, imported water, and recycled water. The City works together with two primary agencies, MET and OCWD, to ensure a safe and reliable water supply that will continue to serve the community in periods of drought and shortage. The sources of imported water supplies include water from the Colorado River and the State Water Project (SWP) provided by MET.

The City’s main source of water supply is groundwater from the OC Basin. Imported water and recycled water supplement the City’s water supply portfolio. In FY 2019-20, the City’s water supplies consisted of 76% groundwater, 23% imported water, and 1% recycled water.

It is projected that by 2045, the City’s water supply portfolio will shift to 84% groundwater, 15% imported water, and 1% recycled water. Note that these representations of supply match the projected demand.

City Council 27 – 17 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
ES-3
The City also has a ten-year purchase agreement with MET that allows the City to purchase significantly more imported water, should the need arise.

The City does not own or operate wastewater treatment facilities but owns and operates the wastewater collection system in its service area that sends all wastewater to OC San for treatment and disposal. The City benefits from its direct and indirect uses of recycled water. OCWD’s Green Acres Project (GAP) produces recycled water for direct non-potable reuses such as landscape irrigation. OCWD’s Groundwater Replenishment System (GWRS) produces recycled water for indirect potable reuse (IPR) through the replenishment of the OC Basin.

WATER SERVICE RELIABILITY AND DROUGHT RISK ASSESSMENT
Every urban water supplier is required to assess the reliability of their water service to its customers under a normal year, a single dry year, and a drought period lasting five consecutive years. The water service reliability assessment compares projected supply to projected demand for the three hydrological conditions between 2025 and 2045. Factors affecting reliability, such as climate change and regulatory impacts, are accounted for as part of the assessment.

The City depends on a combination of imported and local supplies to meet its water demands and has taken numerous steps to ensure it has adequate supplies. MET’s 2020 UWMP concludes that they can meet full-service demands of their member agencies through 2045 during normal years, single-dry years, and multiple-dry years. Consequently, the City is projected to meet full-service demands through 2045 for all scenarios, due to diversified supply and conservation measures.

The Drought Risk Assessment (DRA) evaluates the City’s near-term ability to supply water assuming the City is experiencing a drought over the next five years. Even under the assumption of a drought over the next five years, MET’s 2020 UWMP concludes a surplus of water supplies would be available to all of its Member Agencies, including the City, should the need for additional supplies arise to close any local supply gap. Additionally, the City partakes in various efforts to reduce its reliance on imported water supplies such as increasing the use of local groundwater and recycled water supplies.

WATER SHORTAGE CONTINGENCY PLANNING
Water shortage contingency planning (WSCP) is a strategic planning process that the City engages in to prepare for and respond to water shortages. A water shortage, when water supply available is insufficient to meet the normally expected customer water use at a given point in time, may occur due to a number of reasons, such as water supply quality changes, climate change, drought, and catastrophic events (e.g., earthquake). The City’s WSCP provides real-time water supply availability assessment and structured steps designed to respond to actual conditions. This level of detailed planning and preparation will help maintain reliable supplies and reduce the impacts of supply interruptions.

The WSCP serves as the operating manual that the City will use to prevent catastrophic service disruptions through proactive, rather than reactive, mitigation of water shortages. The WSCP contains the processes and procedures that will be deployed when shortage conditions arise so that the City’s governing body, its staff, and its retail agencies can easily identify and efficiently implement pre-determined steps to mitigate a water shortage to the level appropriate to the degree of water shortfall anticipated.

City Council 27 – 18 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
ES-4

DEMAND MANAGEMENT MEASURES
The City, along with other retail water agencies in Orange County, recognizes the need to use existing water supplies efficiently. This ethic of efficient use of water has evolved as a result of the development and implementation of water use efficiency programs that make good economic sense and reflect responsible stewardship of the region’s water resources. The City participate in regional water savings programs and works closely with MET and MWDOC to promote regional efficiency.

PLAN ADOPTION, SUBMITTAL, AND IMPLEMENTATION
The Water Code requires the UWMP to be adopted by the Supplier’s governing body. Before the adoption of the UWMP, the City notified the public and the cities and counties within its service area per the Water Code and held a public hearing to receive input from the public on the UWMP. Post adoption, the City submitted the UWMP to DWR and other key agencies and made the document available for public review no later than 30 days after filing with DWR.

City Council 27 – 19 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
1-1
1 INTRODUCTION AND UWMP OVERVIEW
The City of Santa Ana (City) prepared this 2020 Urban Water Management Plan (UWMP or Plan) to submit to the California Department of Water Resources (DWR) to satisfy the UWMP Act of 1983 (Act or UWMP Act) and subsequent California Water Code (Water Code) requirements. The City is a retail water supplier that provides water to its residents and other customers using the imported potable water supply obtained from its regional wholesaler, Metropolitan Water District of Southern California (MET), local groundwater from the Orange County Groundwater Basin (OC Basin), and recycled water from the Orange County Water District (OCWD). The City, as one of MET’s 26 member agencies, prepared this 2020 UWMP in collaboration with MET, Municipal Water District of Orange County (MWDOC), OCWD, and other key agencies.

UWMPs are comprehensive documents that present an evaluation of a water supplier’s reliability over a long-term (20-25 year) horizon. In response to the changing climatic conditions and regulatory updates since the 2015 UWMP, the City has been proactively managing its water supply and demand. The water loss audit program, water conservation measures and efforts for increased self-reliance in order to reduce dependency on imported water from the Sacramento-San Joaquin River Delta (Delta) are some of the water management efforts that the City is a part of to maintain the reliability of water supply for its service area.

This 2020 UWMP provides an assessment of the present and future water supply sources and demands within the City’s service area. It presents an update to the 2015 UWMP on City’s water resource needs, water use efficiency programs, water reliability assessment and strategies to mitigate water shortage conditions. It presents a new 2020 Water Shortage Contingency Plan (WSCP) designed to prepare for and respond to water shortages. This 2020 UWMP contains all elements to meet compliance of the new requirements of the Act as amended since 2015.

Overview of Urban Water Management Plan Requirements
The UWMP Act enacted by California legislature requires every urban water supplier (Supplier) providing water for municipal purposes to more than 3,000 customers or supplying more than 3,000 acre-feet (AF) of water annually to prepare, adopt, and file an UWMP with the California DWR every five years in the years ending in zero and five.

For this 2020 UWMP cycle, DWR placed emphasis on achieving improvements for long term reliability and resilience to drought and climate change in California. Legislation related to water supply planning in California has evolved to address these issues, namely Making Conservation a Way of Life [Assembly Bill (AB) 1668 and Senate Bill (SB) 606] and Water Loss Performance Standard SB555. New UWMP requirements in 2020 are a direct result of these new water regulations. Two complementary components were added to the 2020 UWMP. First is the WSCP to assess the Supplier’s near term 5-year drought risk assessment (DRA) and provide a structured guide for the Supplier to deal with water shortages. Second is the Annual Water Supply Demand Assessment (WSDA) to assess the current year plus one dry year i.e., short-term demand/supply outlook. Analyses over near- and long-term horizons together will provide a more complete picture of Supplier’s reliability and will serve to inform appropriate actions it needs to take to build up capacity over the long term.

City Council 27 – 20 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
1-2
The various key new additions in the 2020 UWMP included as a result of the most recent water regulations are:
 Water Shortage Contingency Plan (WSCP) – WSCP helps a Supplier to better prepare for drought conditions and provides the steps and water use efficiency measures to be taken in times of water shortage conditions. WSCP now has more prescriptive elements, including an analysis of water supply reliability; the water use efficiency measures for each of the six standard water shortage levels, that correspond to water shortage percentages ranging from 0 - 10% to greater than 50%; an estimate of potential to close supply gap for each measure; protocols and procedures to communicate identified actions for any current or predicted water shortage conditions; procedures for an annual water supply and demand assessment; monitoring and reporting requirements to determine customer compliance; reevaluation and improvement procedures for evaluating the WSCP.
 Drought Risk Assessment – The Suppliers are now required to compare their total water use and supply projections and conduct a reliability assessment of all their sources for a consecutive five-year drought period beginning 2021.
 Five Consecutive Dry-Year Water Reliability Assessment - The three-year multiple dry year reliability assessment in previous UWMPs has now been extended from three to five consecutive dry years to include a more comprehensive assessment of the reliability of the water sources to improve preparedness of Suppliers for extended drought conditions.  Seismic Risk – The UWMP now includes a seismic risk assessment of the water supply infrastructure and a plan to mitigate any seismic risks on the water supply assets.  Groundwater Supplies Coordination – The UWMP should be in accordance with the Sustainable Groundwater Management Act of 2014 and consistent with the Groundwater Sustainability Plans, wherever applicable.
 Lay Description – To provide a better understanding of the UWMP to the general public, a lay description of the UWMP is included, especially summarizing the Supplier’s detailed water service reliability assessment and the planned management steps and actions to mitigate any possible shortage scenarios.

UWMP Organization
This UWMP is organized into 10 main sections aligned with the DWR Guidebook recommendations.

The subsections are customized to tell the City’s story of water supply reliability and ways to overcome any water shortages over a planning horizon of the next 25 years.

Section 1 Introduction and UWMP Overview gives an overview of the UWMP fundamentals and briefly describes the new additional requirements passed by the Legislature for 2020 UWMP.

Section 2 UWMP Preparation identifies this UWMP as an individual planning effort of the City, lists the type of year and units of measure used and introduces the coordination and outreach activities conducted by the City to develop this UWMP.

Section 3 System Description gives a background on the City’s water system and its climate characteristics, population projection, demographics, socioeconomics, and predominant current and projected land uses of its service area.

City Council 27 – 21 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
1-3
Section 4 Water Use Characterization provides historical, current, and projected water use by customer category for the next 25 years within the City’s service area and the projection methodology used by MWDOC to develop the 25-year projections.

Section 5 Conservation Target Compliance reports the SB X7-7 water use conservation target compliance of the City (individually and as a member of the OC 20x2020 Regional Alliance).

Section 6 Water Supply Characterization describes the current water supply portfolio of the City as well as the planned and potential water supply projects and water exchange and transfer opportunities.

Section 7 Water Service Reliability and Drought Risk Assessment assesses the reliability of the City’s water supply service to its customers for a normal year, single dry year, and five consecutive dry years scenarios. This section also includes a DRA of all the supply sources for a consecutive five-year drought period beginning 2021.

Section 8 Water Shortage Contingency Planning is a brief summary of the standalone WSCP document (Appendix H) which provides a structured guide for the City to deal with water shortages, incorporating prescriptive information and standardized action levels, lists the appropriate actions and water use efficiency measures to be taken to ensure water supply reliability in times of water shortage conditions, along with implementation actions in the event of a catastrophic supply interruption.

Section 9 Demand Management Measures provides a comprehensive description of the water conservation programs that the City has implemented, is currently implementing, and plans to implement in order to meet its urban water use reduction targets.

Section 10 Plan Adoption, Submittal, and Implementation provides a record of the process the City followed to adopt and implement its UWMP.

City Council 27 – 22 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
2-1
2 UWMP PREPARATION
The City’s 2020 UWMP is an individual UWMP for the City to meet the Water Code compliance as a retail water supplier. While the City opted to prepare its own UWMP and meet Water Code compliance individually, the development of this UWMP involved close coordination with its whole supplier, MET and the regional whole supplier for Orange County (OC), MWDOC along with other key entities within the region.

Individual Planning and Compliance
The City opted to prepare its own UWMP (Table 2-1) and comply with the Water Code individually, while closely coordinating with MET, MWDOC and various key entities as discussed in Section 2.2 to ensure regional integration. The UWMP Checklist was completed to confirm the compliance of this UWMP with the Water Code (Appendix A).

One consistency with MWDOC and the majority of its retail member agencies that are part of the OC 20x2020 Regional Alliance is that the City selected to report demands and supplies using fiscal year (FY) basis (Table 2-2).

Table 2-1: Plan Identification
DWR Submittal Table 2-2: Plan Identification
Select
Only One Type of Plan Name of RUWMP or Regional Alliance if applicable Individual UWMP
Water Supplier is also a
member of a RUWMP
Water Supplier is also a
member of a Regional
Alliance
Orange County 20x2020 Regional Alliance
Regional Urban Water Management
Plan (RUWMP)
NOTES:

City Council 27 – 23 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
2-2
Table 2-2: Supplier Identification
DWR Submittal Table 2-3: Supplier Identification
Type of Supplier (select one or both)
Supplier is a wholesaler
Supplier is a retailer
Fiscal or Calendar Year (select one)
UWMP Tables are in calendar years
UWMP Tables are in fiscal years
If using fiscal years provide month and date that the fiscal year begins (mm/dd)
7/1
Units of measure used in UWMP (select from drop down)
Unit AF
NOTES:

The energy intensity data is reported in calendar year
consistent with the Greenhouse Gas Protocol.

Coordination and Outreach

2.2.1 Integration with Other Planning Efforts
The City, as a retail water supplier, coordinated this UWMP preparation effort with other key entities, including MET (regional wholesaler for Southern California and the direct supplier of imported water to the City and MWDOC), MWDOC (regional wholesale supplier for OC), and OCWD (OC Basin manager and provider of recycled water in north OC). While the City is not a member agency of MWDOC, the City developed this Plan in conjunction with other MWDOC-led efforts such as population projection from the Center for Demographic Research at California State University Fullerton (CDR).

Some of the key planning and reporting documents that were used to develop this UWMP are:
 MET’s 2020 UWMP was developed as a part of the 2020 IRP planning process and provides the basis for the projections of the imported supply availability over the next 25 years for the City’s service area.
 MET’s 2020 WSCP provides a water supply assessment and guide for MET’s intended actions during water shortage conditions.

City Council 27 – 24 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
2-3
 2021 OC Water Demand Forecast for MWDOC and OCWD Technical Memorandum (Demand Forecast TM) provides the basis for water demand projections for the City, MWDOC’s member agencies as well as Anaheim and Fullerton.
 MET’s 2020 Integrated Water Resources Plan (IRP) is a long-term planning document to ensure water supply availability in Southern California and provides a basis for water supply reliability in Orange County.
 OCWD’s Groundwater Reliability Plan (to be finalized after July 2021) provides the latest information on groundwater management and supply projection for the OC Basin, the primary source of groundwater for 19 retail water suppliers in OC.  OCWD’s 2019-20 Engineer’s Report provides information on the groundwater conditions and basin utilization of the OC Basin.
 OCWD’s 2017 Basin 8-1 Alternative is an alternative to the Groundwater Sustainability Plan (GSP) for the OC Basin and provides significant information related to sustainable management of the basin in the past and hydrogeology of the basin, including groundwater quality and basin characteristics.
 Local Hazard Mitigation Plan provides the basis for the seismic risk analysis of the water system facilities.
 Water Master Plan of the City provides information on water infrastructure planning projects and plans to address any required water system improvements.

Statewide Water Planning
In addition to regional coordination with various agencies described above, the City as a MET member agency is currently a part of MET’s statewide planning effort to reduce reliance on the water imported from the Delta.

It is the policy of the State of California to reduce reliance on the Delta in meeting California’s future water supply needs through a statewide strategy of investing in improved regional supplies, conservation, and water use efficiency. This policy is codified through the Delta Stewardship Council’s Delta Plan Policy WR P1 and is measured through Supplier reporting in each Urban Water Management Planning cycle. WR P1 is relevant to water suppliers that plan to participate in multi-year water transfers, conveyance facilities, or new diversions in the Delta.

Through significant local and regional investment in water use efficiency, water recycling, advanced water technologies, local and regional water supply projects, and improved regional coordination of local and regional water supply efforts, the City has demonstrated a reduction in Delta reliance and a subsequent improvement in regional self-reliance. For a detailed description and documentation of the City’s consistency with Delta Plan Policy WR P1 see Section 7.4 and Appendix C.

2.2.2 Wholesale and Retail Coordination
The City developed its UWMP in conjunction with the MET’s 2020 UWMP. As part of the 2020 UWMP coordination process, the City provided its water demand projections over the next 25 years to MET (Table 2-3). The projections of the City’s water demand over the next 25 years were facilitated by MWDOC, the wholesale member of the OC 20x2020 Regional Alliance, by using the historical water use and initial water use projections provided to MWDOC by the City.

City Council 27 – 25 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
2-4
Table 2-3 Retail: Water Supplier Information Exchange
DWR Submittal Table 2-4 Retail: Water Supplier Information Exchange The retail Supplier has informed the following wholesale supplier(s) of projected water use in accordance with Water Code Section 10631.

Wholesale Water Supplier Name
MET
NOTES:

2.2.3 Public Participation
For further coordination with other key agencies and to encourage public participation in the review and update of this Plan, the City held a public hearing and notified key entities and the public per the Water Code requirements. Sections 10.2 and 10.3 describe these efforts in detail.

City Council 27 – 26 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-1
3 SYSTEM DESCRIPTION
Governed by a non-partisan seven-member City Council, the City is one of the oldest cities in Orange County, incorporated in 1886 and became an original member agency of the MET on February 27, 1931.

The City’s water service area covers 27.5 square miles and includes the City of Santa Ana and a small neighborhood in the City of Orange, near Tustin Avenue and Fairhaven by the northeast corner of Santa Ana. The City operates ten reservoirs with a storage capacity of 49 million gallons (MG), seven pumping stations, 21 groundwater wells, four pressure regulating stations and seven import water connections and manages 510.1-mile water mains system with 45,037 service connections.

Lying in the South Coast Air Basin (SCAB), its climate is characterized by Southern California’s “Mediterranean” climate with mild winters, warm summers and moderate rainfall. In terms of land use, the City is a predominantly single and multi-family residential community. Moving forward, the City will continue planning for its Regional Housing Needs Assessment (RHNA) allocation and future planned developments beyond 2020 will primarily be multiuse projects, in the ‘focus areas’ listed in the General Plan of the City. The current population of 335,086 is projected to increase by only 2.9% over the next 25 years.

Agency Overview
This section provides information on the formation and history of the City, its organizational structure, roles, objectives and relationship to MET.

3.1.1 Formation and Purpose
The City is one of the oldest cities in Orange County incorporated in 1886. The City was, for many years, a ranching community with some farming. To serve this growing agricultural and domestic community, a municipal water system was formed in 1886. The original source of water supply for the City was from shallow irrigation wells. As the City continued to grow and change from agriculture to an urban community, the need for additional sources of water was recognized if economic development were to continue.

To tap into water sources from outside the area, the City joined with 12 other Southern California cities to form and be an original member agency of the MET on February 27, 1931. MET, as a regional wholesaler, supplies imported water to Southern California from the Colorado River and from the State Water Project from Northern California. MET’s primary purpose is to develop, store and distribute water at wholesale rates to its member public agencies for domestic and municipal uses. The City’s location is shown on Figure 3-1.

In 1933, the OCWD was formed by a special act of the State Legislature to manage Orange County’s groundwater supply and protection of the County’s rights to water in the Santa Ana River. In 1953, the City became a member of OCWD.

City Council 27 – 27 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-2
Figure 3-1: Regional Location of City of Santa Ana
City Council 27 – 28 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-3

3.1.2 City Council
The City is governed by a non-partisan seven-member City Council, elected to serve staggered four-year terms, except for the Mayor, who serves a two-year term. The City Council appoints the City Manager and various members of commissions, committees, and citizen advisory groups, all of which may weigh in on water management issues and decisions for the City. The current Council members are:
 Vicente Sarmiento, Mayor
 Thai Viet Phan (Ward 1)
 David Penaloza, Mayor Pro Tem (Ward 2)
 Jessie Lopez (Ward 3)
 Phil Bacerra (Ward 4)
 Johnathan Ryan Hernandez (Ward 5)
 Nelida Mendoza (Ward 6)
Water Service Area and Facilities

3.2.1 Water Service Area
The City is in the heart of Orange County and is the eleventh largest City in California. The City’s Water Utility provides water service within a 27.5 square mile service area. The service area includes the City of Santa Ana and a small neighborhood in the City of Orange, near Tustin Avenue and Fairhaven by the northeast corner of Santa Ana. A map of the City's water service area is shown as Figure 3-2.

City Council 27 – 29 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-4
Figure 3-2: City of Santa Ana Water Service Area

3.2.2 Water Facilities
The City maintains 510.1 miles of water mains, ten reservoirs with a storage capacity of 49 MG, seven pumping stations, 21 groundwater wells, four pressure regulating stations and seven import water connections. Figure 3-3 shows the City’s water system facilities.

City Council 27 – 30 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-5
Figure 3-3: Water System Facilities
City Council 27 – 31 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-6
Fourteen of the City Wells pump into surface reservoirs with booster stations pumping the water into the distribution system. The remaining seven wells pump directly into the City’s distribution system. Water pumped from all of the wells has been naturally filtered as it passes through underlying aquifers of sand, gravel, and soil. This well water only requires disinfectant treatment for system distribution.

The City maintains seven imported water connections to receive water through MET’s Orange County and East Orange County Feeder pipelines. These seven metered connections with a total capacity of 60,580 gallons per minute (gpm) transfer water into the City’s distribution system.

System Pressures – Reducing distribution system pressures will, to a certain degree, conserve water and pumping energy by reducing leaking in water and plumbing systems, as well as reducing waste or water when turning water fixtures on and off. The City continually reviews the pressure zones to determine the feasibility of reducing system pressures by lowering settings on distribution system pressure regulators. The reviews have indicated that potential fire protection requirement deficiencies occur when pressures are reduced. Therefore, the City maintains safe yet efficient system pressures.

Peak Demand – Water system demand patterns are a result of climatological, land use, sociological, and institutional factors, all of which affect the amount of water consumed. Reduction in peak demands can reduce the need for construction of new water storage and conveyance facilities and, in certain instances, the development of new water sources. The City’s computerized telemetry system allows water system operators to operate the system more efficiently through the ability to stage and prioritize water production facilities usage to meet these ever-changing demand patterns.

The system connections and water volume supplied are summarized in Table 3-1.

Table 3-1: Retail Only: Public Water Systems
DWR Submittal Table 2-1 Retail Only: Public Water Systems Public Water System
Number
Public Water System
Name
Number of Municipal
Connections 2020
Volume of
Water Supplied
2020
CA3010038 City of Santa Ana 45,037 33,489
TOTAL 45,037 33,489
NOTES:

Climate
The City is located within the SCAB that encompasses all of OC, and the urban areas of Los Angeles, San Bernardino, and Riverside counties. The SCAB climate is characterized by Southern California’s “Mediterranean” climate: a semi-arid environment with mild winters, warm summers, and moderate rainfall.

Local rainfall has limited impacts on reducing water demand in the City, except for landscape irrigation demand. Water that infiltrates into the soil may enter groundwater supplies depending on the local geography. However, due to the large extent of impervious cover in Southern California, rainfall runoff City Council 27 – 32 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-7
quickly flows to a system of concrete storm drains and channels that lead directly to the ocean. OCWD is one agency that has successfully captured stormwater along the Santa Ana River and in recharge basins for years and used it as an additional source of supply for groundwater recharge. Based on the 2017 Basin 8-1 Alternative Plan, OCWD captured an average annual stormwater volume of approximately 44,000 AF over the period of ten years, from Water Year 2006-07 to 2015-16; however, this period’s rainfall was 17% below the long term average using San Bernardino precipitation data.

Based on a longer period (1989-2015) of rainfall and captured stormwater records, the average year water budget of OCWD assumes a stormwater capture volume of 52,000 AF.

Population, Demographics, and Socioeconomics

3.4.1 Population
According to CDR, the City’s service area has a 2020 population of 335,086, a decrease from the 2015 population of 338,336. Overall, the population increases with a moderate growth of 2.9% over the 25-year period from 2020 to 2045. The growth is slightly higher in the first 15 years until 2035 and tapered off from there. Table 3-2 shows the population projections in five-year increments out to 2045 within the City’s service area.

Table 3-2: Retail: Population - Current and Projected
DWR Submittal Table 3-1 Retail: Population - Current and Projected Population
Served
2020 2025 2030 2035 2040 2045(opt)
335,086 343,358 347,511 347,952 347,785 345,018
NOTES:

Source - Center for Demographic Research at California State University, Fullerton, 2020

3.4.2 Demographics and Socioeconomics
As shown in Table 3-3 below, the total number of dwelling units in the City is expected to increase by

4.6% in the next 25 years from 78,650 in 2020 to 82,243 in 2045. Table 3-3 also shows a breakdown of the total dwelling units by type for the 25-year period from 2020 to 2045.

City Council 27 – 33 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-8
Table 3-3: City of Santa Ana Service Area Dwelling Units by Type City of Santa Ana Service Area Dwelling Units by Type
Dwelling Units 2020 2025 2030 2035 2040 2045
Total 78,650 82,043 82,061 82,225 82,238 82,243
Single Family 34,133 34,329 34,329 34,333 34,337 34,341 All Other* 44,517 47,714 47,732 47,892 47,901 47,902
Source: Center for Demographic Research at California State University, Fullerton, 2020 *Includes duplex, triplex, apartment, condo, townhouse, mobile home, etc. Yachts, houseboats, recreational vehicles, vans, etc. are included if is primary place of residence. Does not include group quartered units, cars, railroad box cars, etc.

In addition to the types and proportions of dwelling units, various socio-economic factors such as age distribution, education levels, general health status, income and poverty levels affect City’s water management and planning. Based on U.S. Census Bureau's QuickFacts, the City has about 9% of population of 65 years and over, 26.9% under the age of 18 years and 7.4% under the age of 5 years.

59.6% of the City’s population with an age of more than 25 years has a minimum of high school graduate and 15% of this age group has at least a bachelor’s degree.

3.4.3 CDR Projection Methodology
The City obtains its services area population and dwelling unit data from MWDOC via CDR. MWDOC contracts with CDR to update the historic population estimates for 2010 to the current year and provide an annual estimate of population served by the water suppliers in OC. CDR uses GIS and data from the 2000 and 2010 U.S. Decennial Censuses, State Department of Finance (DOF) population estimates, and the CDR annual population estimates. These annual estimates incorporate annual revisions to the DOF annual population estimates, often for every year back to the most recent Decennial Census. As a result, all previous estimates were set aside and replaced with the most current set of annual estimates.

Annexations and boundary changes for water suppliers are incorporated into these annual estimates.

In the summer of 2020, projections by water supplier for population and dwelling units by type were estimated using the 2018 Orange County Projections dataset. Growth for each of the five-year increments was allocated using GIS and a review of the traffic analysis zones (TAZ) with a 2019 aerial photo.

The growth was added to the 2020 estimates by the water supplier.

Land Uses

3.5.1 Current Land Uses
The City’s service area can best be described as a predominantly single and multi-family residential community located in central Orange County.

City Council 27 – 34 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-9
Based on the zoning designation collected and aggregated by Southern California Association of Governments (SCAG) around 2018, the current land use within the City’s service area can be categorized as follows:
 Single family residential – 48%
 Multi-family residential – 14.1%
 Commercial – 10.8%
 Industrial – 7.1%
 Institutional/Governmental – 10.3%
 Open space and parks – 8.4%
 Other – 1.1% (e.g., Undevelopable or Protected Land, Water, and Vacant)  No land use designations – 0.2%

3.5.2 Projected Land Uses
Moving forward, the City will continue planning for its RHNA allocation and new developments may potentially include Accessory Dwelling Units (ADUs).

RHNA - State law requires jurisdictions to provide their share of the RHNA allocation. SCAG determines the housing growth needs by income for local jurisdictions through RHNA. The City’s RHNA allocation for the 2021 - 2029 is 3,095 units. This includes 586 units for very low-income households, 362 units for low-income households, 523 units for moderate-income households, and 1,624 units for above moderate-income households.

Accessory Dwelling Units – ADUs are separate small dwellings embedded within residential properties.

There has been an increase in the construction of ADUs in California in response to the rise in interest to provide affordable housing supply. The Legislature updated the ADU law effective January 1, 2020 to clarify and improve various provisions to promote the development of ADUs. (AB-881, "Accessory dwelling units," and AB-68, "Land use: accessory dwelling units”) These include:
 allowing ADUs and Junior Accessory Dwelling Units (JADUs) to be built concurrently with a single-family dwelling. JADUs max size is 500 square feet (sf).  opening areas where ADUs can be created to include all zoning districts that allow single-family and multi-family uses
 maximum size cannot be less than 850 sf for a one-bedroom ADU or 1,000 sf for more than one bedroom (California Department of Housing and Community Development, 2020) About 92% of the ADUs in California are being built in the single family zoned parcels (University of California Berkeley, 2020). The increase in ADUs implies an increase in number of people per dwelling unit which potentially translates to higher water demand.

In coordination with the General Plan Advisory Group, the City identified the following five focus areas suitable for new growth and development in the October 2020 Public Hearing Draft General Plan:
 South Main Street
 Grand Avenue/17th Street
 West Santa Ana Boulevard
 55 Freeway/Dyer Road
City Council 27 – 35 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-10
 South Bristol Street
These five areas are along major travel corridors, the Orange County Streetcar line, and/or linked to the Downtown. The intent is to expand opportunities for development through a transition to multiuse land use designations near transit corridors. The Industrial Flex designation is being introduced on areas already designated for industrial land uses in order to allow for cleaner industrial and commercial uses, professional office, and creative live-work spaces.

Additionally, the City has seven planning areas including specific plans and other special zoning areas, that were adopted before the General Plan and have remaining development capacity:
 Adaptive Reuse Overlay (2014)
 Bristol Street Corridor Specific Plan (1991/2018)
 Harbor Mixed Use Corridor Specific Plan (2014)
 MainPlace Specific Plan (2019)
 Metro East Overlay Zone (2007/2018)
 Midtown Specific Plan (1996)
 Transit Zoning Code Specific Devt (2010)
Figure 3-4 below shows the above listed five focus areas and the seven planning areas of the City.

City Council 27 – 36 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-11
Figure 3-4: Special Planning Areas of the City of Santa Ana City Council 27 – 37 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-12
Table 3-4 lists the buildout potential of the City based on the City’s October 2020 Public Hearing Draft General Plan.

Table 3-4: Buildout Potential of the City
Planning Area
Existing1 Buildout
Dwelling Units Building
(square feet)2
Dwelling Units
Building
(square feet)2
Specific Plan / Special Zoning 4,685 13,924,891 20,524 16,958,445 Adaptive Reuse Overlay Zone3 260 976,935 1,260 976,935
Bristol Street Corridor Specific Plan 136 140,348 135 143,139 Harbor Corridor Specific Plan 1,324 1,767,937 4,622 1,967,982 MainPlace Specific Plan 0 1,108,080 1,900 2,426,923
Metro East Overlay Zone 844 2,516,056 5,551 4,685,947
Midtown Specific Plan 607 1,885,065 607 1,818,253
Transit Zoning Code 1,514 5,530,470 6,449 4,939,266
Focus Areas 6,380 13,421,155 23,955 15,684,285
South Main Street 1,720 1,685,978 2,308 946,662
Grand Avenue/17th Street 561 1,400,741 2,283 703,894
West Santa Ana Boulevard 2,658 3,090,472 3,920 2,808,805 55 Freeway/Dyer Road 1,221 5,666,453 9,952 6,142,283
South Bristol Street 220 1,577,511 5,492 5,082,641
All Other Areas of the City4 67,727 39,772,550 70,574 40,325,086 Citywide Total 78,792 67,118,596 115,053 72,967,816
Source: City of Santa Ana with assistance from PlaceWorks, 2020.

Notes:

1. "Existing" represents conditions as of December 2019 as derived from the City of Santa Ana Planning Information Network and projects already under construction per the January 2020 monthly development project report.

2. Only includes nonresidential building square footage.

City Council 27 – 38 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
3-13
Planning Area
Existing1 Buildout
Dwelling Units Building
(square feet)2
Dwelling Units
Building
(square feet)2

3. The figures shown on the row for the Adaptive Reuse Overlay represent parcels that are exclusively in the Adaptive Reuse Overlay boundary. Figures for parcels that are within the boundaries of both the Adaptive Reuse Overlay Zone and a specific plan, other special zoning, or focus area boundary are accounted for in the respective specific plan, other special zoning, or focus area.

4. The City has included an assumption for growth on a small portion (5%) of residential parcels through the construction of second units, which is distributed throughout the City and is not concentrated in a subset of neighborhoods. Additional growth includes known projects in the pipeline and an increase of 10% in building square footage and employment for the professional office surrounding the Orange County Global Medical Center and along Broadway north of the Midtown Specific Plan as well as the commercial and retail along 1st Street south of the West Santa Ana Boulevard focus area.

City Council 27 – 39 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-1
4 WATER USE CHARACTERIZATION
Water Use Overview
Water use within the City’s service area has been relatively stable in the past decade with an annual average of 36,245 AF. The potable and non-potable water use accounts for an average of 99% and 1% of total City water use, respectively. In FY2019/20, the City’s water use was 33,240 AF of potable water (groundwater and imported) and 249 AF of direct recycled water for landscape irrigation. In FY2019-20, the City’s potable water use profile was comprised of 65.5% residential use, 24.5% commercial, industrial, and institutional (CII), and 4.0% large landscape/irrigation, with non-revenue water and other uses comprising about 5.9%. As described in Section 3, the City’s service area is almost completely built-out and is projected to add minimum land use and small population increase. Water demand is likely to increase ~1.2% over the next 5 years. In the longer term, water demand is projected to decrease ~0.2% from 2025 through 2045. The projected potable and non-potable water use for 2045 is 33,578 AF and 249 AF, respectively. The passive savings are anticipated to continue for the next 25 years and are considered in the water use projections. Permanent water conservation requirements and water conservation strategies are discussed in Section 8 and 9 of this document.

Past and Current Water Use
Water use within the City’s service area has been relatively stable in the past decade with an annual average of 36,245 AF. A stable trend is expected because the city is essentially built-out and the rate of population growth is expected to average less than 0.12% per year for the next 25 years. Water conservation efforts also kept per capita water use down.

As a result of Governor Jerry Brown’s mandatory water conservation order in 2014, the City’s water use in the last five years decreased below the 10-year average. Between FY2015/16 and FY2019/20, water use within the City’s service area ranged from 33,148 to 35,343 acre-feet per year (AFY) (potable and non-potable combined). In the past decade, between FY2010/11 and FY 2019/20, potable and non-potable water use accounts for an average of 99% and 1% of total City water use, respectively.

Potable water uses include demands from residential, CII, and large landscape irrigation. Non-potable use includes the use of recycled water for large landscape and golf course irrigation.

As of FY2019/20 there are 45,037 active service connections in the City’s water distribution system. Of these, 18 are recycled water accounts. Table 4-1 summarizes the City’s total water demand for potable and non-potable water for FY2019-20. The City has a mix of commercial uses (markets, restaurants, etc.), public entities (schools, fire stations and government offices), industrial uses and office complexes.

Single and multi- family residential water demand combined accounts for 65.5% of the total water demand. Commercial use, governmental/institutional, and industrial account for 16.1%, 5.4%, and 3.0% of total demand, respectively. Large landscape (irrigation) accounts for 4.0% of total demand. Other uses and non-revenue water account for 5.9%.

City Council 27 – 40 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-2
Table 4-1 Retail: Demands for Potable and Non-Potable Water – Actual DWR Submittal Table 4-1 Retail: Demands for Potable and Non-Potable1 Water - Actual Use Type 2020 Actual
Additional Description
(as needed)
Level of Treatment
When Delivered Volume2
Single Family Drinking Water 11,916
Multi-Family Drinking Water 9,872
Commercial Drinking Water 5,364
Industrial Drinking Water 987
Institutional/Governmental Drinking Water 1,788
Landscape
Represents large landscape
(with irrigation meters)
served by potable water
and not recycled water
Drinking Water 1,349
Losses Non-revenue water Drinking Water 1,940
Other Water-only customer
outside of City boundary Drinking Water 24
TOTAL 33,240
1 Recycled water demands are NOT reported in this table. Recycled water demands are reported in Table 6-4. 2 Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Table 2-3.

NOTES: Volumes reported in AF. This table only represents potable water; recycled water projections are shown in Table 4-4 (DWR Submittal Tables 4-3) and Table 6-8 (DWR Submittal Tables 6-4).

City Council 27 – 41 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-3
Water Use Projections
A key component of this 2020 UWMP is to provide an insight into the City’s future water demand outlook.

This section discusses the considerations and methodology used to estimate the 25-year water use projection. Overall, total water demand is projected to increase 1.0% between 2020 and 2045. While both single residential use is projected to decrease, multifamily residential use and usage by CII are projected to increase. Demands for large landscape applications are projected to increase. Non-revenue water is projected to decrease in the same period.

4.3.1 Water Use Projection Methodology
In 2021, MWDOC and OCWD, in collaboration with member agencies and MET member agencies, led the effort to update water demand projections originally done as part of the 2021 OC Water Demand Forecast for MWDOC and OCWD. The updated demand projections, prepared by CDM Smith, were for the Orange County region as a whole, and provided retail agency specific demands. The projections span the years of 2025-2050 and are based upon information surveyed from each Orange County water agency.

The forecast methodology began with a retail water agency survey that asked for FY 2017-18, FY 2018-19 and FY 2019-20 water use by major sector, including number of accounts. If an agency provided recycled water to customers that information was also requested. Given that FY 2017-18 was a slightly above-normal demand year (warmer/drier than average) and FY 2018-19 was a slightly below-normal demand year (cooler/wetter than average), water use from these two years were averaged to represent an average-year base water demand.

For the residential sectors (single-family and multifamily) the base year water demand was divided by households in order to get a total per unit water use (gallons per home per day). In order to split household water use into indoor and outdoor uses, three sources of information were used, along with CDM Smith’s expertise. The sources of information included: (1) the Residential End Uses of Water (Water Research Foundation, 2016); (2) California’s plumbing codes and landscape ordinances; and (3) CA DWR’s Model Water Efficient Landscape Ordinance (MWELO) calculator.

Three different periods of residential end uses of water were analyzed as follows:
 Pre-2010 efficiency levels – Has an average indoor water use that is considered to be moderately efficient, also does not include the most recent requirements for MWELO.  High-efficiency levels – Includes the most recent plumbing codes that are considered to be highly efficient, and also includes the most recent requirements for MWELO.  Current average efficiency levels – Represents the weighted average between pre-2010 efficiency and high efficiency levels, based on average age of homes for each retail water agency.

For outdoor residential water use, the indoor per capita total was multiplied by each agency-specific persons per household in order to get an indoor residential household water use (gallons per day per home), and then was subtracted from the base year total household water use for single-family and multifamily for each agency based on actual water use as reported by the agency surveys.

City Council 27 – 42 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-4
For existing residential homes, the current average indoor and outdoor water use for each agency were used for the year 2020. It was assumed that indoor water uses would reach the high efficiency level by 2040. Based on current age of homes, replacement/remodeling rates, and water utility rebate programs it is believed this assumption is very achievable. It was also assumed that current outdoor water use would be reduced by 5% by 2050.

For new homes, the indoor high efficiency level was assumed for the years 2025 through 2050. Outdoor uses for new homes were assumed to be 25% and 30% lower than current household water use for single-family and multifamily homes, respectively. This methodology is illustrated in Figure 4-1 below.

Figure 4-1: Water Use Projection Methodology Diagram
Existing and projected population, single-family and multifamily households for each retail water agency were provided by CDR under contract by MWDOC and OCWD. CDR provides historical and future demographics by census tracts for all of Orange County (Section 3.4). Census tract data is then clipped to retail water agency service boundaries in order to produce historical and projected demographic data by agency.

For the CII water demands, which have been fairly stable from a unit use perspective (gallons/account/day), it was assumed that the unit demand in FY 2019-20 would remain the same from 2020-2025 to represent COVID-19 impacts. Reviewing agency water use data from FY 2017-18 through FY2019-20 revealed that residential water use increased slightly in FY 2019-20 while CII demands decreased slightly as a result of COVID-19. From 2030 to 2050, the average CII unit use from FY 2017-18 and 2018-19 was used. These unit use factors were then multiplied by an assumed growth of CII accounts under three broad scenarios:
 Low Scenario – assuming no growth in CII accounts
 Mid Scenario – assuming 0.5% annual growth in CII accounts  High Scenario – assuming 1.5% annual growth in CII accounts City Council 27 – 43 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-5
For most retail agencies, the Mid Scenario of CII account growth was used, but for those retail agencies that have had faster historical growth the High Scenario was used. For those retail agencies that have had relatively stable CII water demand, the Low Scenario was used. For Santa Ana, the mid-scenario was used.

For those agencies that supply recycled water for non-potable demands, MWDOC used agency-specified growth assumptions. Most agencies have already maximized their recycled water and thus are not expecting for this category of demand to grow. However, a few agencies in South Orange County do expect moderate growth in recycled water customers.

For large landscape customers served currently by potable water use, MWDOC assumed these demands to be constant through 2050, except for agencies that have growing recycled water demands. For the agencies that have growing recycled water demands, large landscape demands served by potable water reduced accordingly. For non-revenue water, which represents the difference in total water production less all water billed to customers, this percentage was held constant through 2050. Note that 2050 data was not presented in the UWMP.

An agency’s water use demand projection is the summation of their residential water demand, CII demands, large landscape and recycled water demands, and water losses all projected over the 25-year time horizon. These demands were provided to each of the Orange County water agencies for their review, feedback, and revision before being finalized.

4.3.1.1 Weather Variability and Long-Term Climate Change Impacts In any given year water demands can vary substantially due to weather. In addition, long-term climate change can have an impact on water demands into the future. For the 2014 OC Water Reliability Study, CDM Smith developed a statistical model of total water monthly production from 1990 to 2014 from a sample of retail water agencies. This model removed impacts from population growth, the economy and drought restrictions in order to estimate the impact on water use from temperature and precipitation.

The results of this statistical analysis are:
 Hot/dry weather demands will be 5.5% greater than current average weather demands  Cooler/wet weather demands will be 6% lower than current average weather demands  Climate change impacts will increase current average weather demands by:
o 2% in 2030
o 4% in 2040
o 6% in 2050

4.3.2 25-Year Water Use Projection
The projected demand values were provided by MWDOC and reviewed by the City as part of the UWMP effort. As the regional wholesale supplier for much of Orange County, MWDOC works in collaboration with each of its retail agencies as well as MET (its wholesaler), and the City (who is a direct Member Agency of MET) to develop demand projections for imported water. The City has been proactively decreasing its reliance on imported water by pursuing a variety of water conservation strategies within the service area. Future water savings and low-income water use are included in these projected values.

City Council 27 – 44 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-6

4.3.2.1 Water Use Projections for 2021-2025
The water use projection for normal year conditions without drought for 2021-2025 is presented in Table 4-2. This table will be adjusted to estimate the five-years’ cumulative drought effects as described in the five-year DRA in Section 7. A linear increase in total water demand is expected between 2021 and 2025.

Table 4-2: Water Use Projections for 2021 to 2025
Retail: Total Water Demand
FY Ending 2021 2022 2023 2024 2025
Total Water Demand (AF) 33,568 33,647 33,725 33,804 33,882 NOTES:

4.3.2.2 Water Use Projections for 2025-2045
Table 4-3 is a projection of the City’s water demand for 2025-2045. While single and multifamily residential use is projected to decrease due to water use efficiency measures, usage by CII is projected to increase. CII projections for 2025 through 2045 were broken down into commercial, industrial, and institutional/governmental using proportions reported for each billing sector in FY 2019-20. Demands for large landscape applications are projected to stay consistent, as are projections for non-revenue water.

The demand data presented in this section accounts for passive savings in the future. Passive savings are water savings as a result of codes, standards, ordinances and public outreach on water conservation and higher efficiency fixtures. Passive savings are anticipated to continue through 2045 and will result in continued water saving and reduced consumption levels. Permanent water conservation requirements and water conservation strategies are discussed in Section 8 and 9 of this document.

City Council 27 – 45 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-7
Table 4-3: Retail: Use for Potable and Non-Potable Water – Projected DWR Submittal Table 4-2 Retail: Use for Potable and Non-Potable1 Water - Projected Use Type Additional
Description
(as needed)
Projected Water Use2
Report To the Extent that Records are
Available
2025 2030 2035 2040 2045
Add additional rows as needed
Single Family 11,961 11,675 11,390 11,105 11,101
Multi-Family 10,648 10,415 10,211 9,976 9,967
Commercial 5,486 6,155 6,309 6,466 6,466
Industrial 1,009 1,132 1,161 1,190 1,190
Institutional/Governmental 1,828 2,051 2,102 2,155 2,155 Landscape 1,501 1,501 1,501 1,501 1,501
Losses Non-revenue water 1,198 1,217 1,207 1,197 1,196
TOTAL 33,633 34,146 33,881 33,589 33,578
1 Recycled water demands are NOT reported in this table. Recycled water demands are reported in Table 6-4.
2 Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Table 2-3.

NOTES: Volumes reported in AF. This table only represents potable water; recycled water projections are shown in Table 4-4 (DWR Submittal Tables 4-3) and Table 6-8 (DWR Submittal Tables 6-4).

Source - CDM Smith, 2021
Based on the information provided above, the total demand for potable water is listed below in (Table 4-4). The City currently provides recycled water in its service area and is projected to grow its use.

City Council 27 – 46 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-8
Table 4-4 Retail: Total Water Use (Potable and Non-Potable) DWR Submittal Table 4-3 Retail: Total Water Use (Potable and Non-Potable) 2020 2025 2030 2035 2040 2045 (opt)
Potable Water, Raw, Other
Non-potable 33,240 33,633 34,146 33,881 33,589 33,578
Recycled Water Demand1 249 249 249 249 249 249
Optional Deduction of
Recycled Water Put Into
Long-Term Storage2
TOTAL WATER USE 33,489 33,882 34,395 34,130 33,838 33,827 1Recycled water demand fields will be blank until Table 6-4 is complete 2 Long term storage means water placed into groundwater or surface storage that is not removed from storage in the same year. Supplier may deduct recycled water placed in long-term storage from their reported demand. This value is manually entered into Table 4-3.

NOTES: Volumes in AF
Future water savings and low-income water use are included in these projected values (Table 4-5).

Table 4-5 Retail Only: Inclusion in Water Use Projections DWR Submittal Table 4-5 Retail Only: Inclusion in Water Use Projections Are Future Water Savings Included in Projections?
(Refer to Appendix K of UWMP Guidebook) Yes
If "Yes" to above, state the section or page number, in the cell to the right, where citations of the codes, ordinances, or otherwise are utilized in demand projections are found.

Section 8 and 9
Are Lower Income Residential Demands Included In Projections? Yes NOTES:

4.3.2.3 Water Use Projections for Lower Income Households Since 2010, the UWMP Act has required retail water suppliers to include water use projections for single-family and multi-family residential housing for lower income and affordable households. This will assist the City in complying with the requirement under Government Code Section 65589.7 granting City Council 27 – 47 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-9
priority for providing water service to lower income households. A lower income household is defined as a household earning below 80% of the MHI.

DWR recommends retail suppliers rely on the housing elements of city or county general plans to quantify planned lower income housing with the City's service area (DWR, 2020). RHNA assists jurisdictions in updating general plan's housing elements section. The RHNA identifies additional housing needs and assesses households by income level for the City through 2010 decennial Census and 2005-2009 American Community Survey data. The sixth cycle of the RHNA covers the planning period of October 2021 to October 2029. The SCAG adopted the RHNA Allocation Plan for this cycle on March 4, 2021.

The California Department of Housing and Community Development reviewed the housing elements data submitted by jurisdictions in the SCAG region and concluded the data meets statutory requirements for the assessment of current housing needs.

Under the assumption that the RHNA household allocations adequately represent ratios of the City’s overall future income categories (not the exact ratio of all household by income but a conservative one for low-income household estimates), the RHNA low-income percentage can be used to estimate future low income demands. One objective of RHNA is to increase affordable housing, therefore RHNA has been allocating additional low-income households to various regions. Because relying on the RHNA distribution of households by income category is likely to produce an overestimate of low-income water demands, this approach represents a conservative projection of future low-income water use.

Table 4-6 presents the City’s RHNA housing allocation. RHNA classifies low income housing into two categories: very low income (<30% - 50% MHI), and low income (51% - 80% MHI). Altogether 30.6% of the City’s allocated housing need for the planning period of October 2021 to October 2029 are considered low-income housing (SCAG, 2021).

Table 4-6: SCAG 6th Cycle Household Allocation Based on Median Household Income Household Category by Income Number of
Households
% of Total
Allocated
Households
Very Low Income 586 18.9%
Low Income 362 11.7%
Moderate Income 523 16.9%
Above Moderate Income 1,624 52.5%
Total Future Allocated Households 3,095 100.0%
By applying the percentage of low-income housing from the SCAG report to the total projected SF/MF residential demand calculated in Table 4-3 above, low-income demand can be conservatively estimated for both SF and MF through 2045. For example, the total low-income single family residential demand is projected to be 3,664 AF in 2025 and 3,400 AF in 2045 (Table 4-7).

City Council 27 – 48 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-10
Table 4-7: Projected Water Use Needed for Low Income Households (AF) Water Use Sector
FY Ending
2025 2030 2035 2040 2045
Total Residential Demand (AF) 22,609 22,090 21,601 21,081 21,068 Single-Family Residential Demand -
Low Income Households (AF) 3,664 3,576 3,489 3,401 3,400 Multi-Family Residential Demand -
Low Income Households (AF) 3262 3190 3128 3056 3053
Total Low Income Households
Demand (AF) 6,925 6,766 6,616 6,457 6,453
Water Loss
The City has conducted annual water loss audit since 2015 per the American Water Works Association (AWWA) methodology per SB 555 to understand the relationship between water loss, operating costs, and revenue losses. Non-revenue water for FY2015/16 – FY2019/20 (Figure 4-2) consists of three components: real losses (e.g., leakage in mains and service lines, and storage tank overflows), apparent losses (unauthorized consumption, customer metering inaccuracies and systematic data handling errors), and unbilled water (e.g., hydrant flushing, firefighting, and blow-off water from well start-ups). The City’s real losses ranged from 157 AFY to 1,007 AFY and apparent losses ranged from 803 AFY to 858 AFY between FY2015/16 – FY2019/20. The unbilled water ranged from 82 AFY to 411 AFY in the same timeframe.

In the latest water loss audit (FY2019/20), the City’s total water loss was 1856 AFY (Table 4-8), compared to the total water use of 33,489 AF in FY2019/20. The total water loss consists of real loss of 1,007 AFY and apparent loss of 849 AFY in FY2019/20. The non-revenue water was 1,940 AFY. The active and inactive service connections were relatively consistent in the last five years with 45,037 connections in FY2019/20. The real loss performance indicator was 20 gals/connection/day in FY2019/20. Figure 4-3 presents the performance indicators of gallons of real and apparent loss per connection per day.

Understanding and controlling water loss from a distribution system is an effective way for the City to achieve regulatory standards and manage their existing resources. The California State Water Resources Control Board (SWRCB) is still developing water loss performance standards; these standards have not yet been adopted.

City Council 27 – 49 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-11
Table 4-8: Retail: Last Five Years of Water Loss Audit Reporting Submittal Table 4-4 Retail: Last Five Years of Water Loss Audit Reporting Reporting Period Start Date (mm/yyyy) Volume of Water Loss 1,2 07/2015 961
07/2016 1236
07/2017 1638
07/2018 1649
07/2019 1856
1 Taken from the field "Water Losses" (a combination of apparent losses and real losses) from the AWWA worksheet. 2 Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Table 2-3.

NOTES: Water Loss in AFY
Figure 4-2: Water Loss Audit for FY 2015/16 to FY 2019/20 0 500
1000
1500
2000
2500
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020
Water Loss (AFY)
Year
Real Loss Apparent Loss Unbilled Water
City Council 27 – 50 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
4-12
Figure 4-3: Water Loss Performance Indicators for FY 2015/16 to FY 2019/20 0 5
10 15
20 25
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020
Gal/connection/day
Year
Real Loss Apparent Loss
City Council 27 – 51 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
5-13
5 CONSERVATION TARGET COMPLIANCE
The Water Conservation Act of 2009, also known as SBx7-7 (Senate Bill 7 as part of the Seventh Extraordinary Session), signed into law on February 3, 2010, requires the State of California to reduce urban water use by 20% by the year 2020 (20x2020). To achieve this each retail urban water supplier must determine baseline water use during their baseline period and target water use for the years 2015 and 2020 to meet the state’s water reduction goal. Retail water suppliers are required to comply with SBx7-7 individually or as a region in collaboration with other retail water suppliers, or demonstrate they have a plan or have secured funding to be in compliance, in order to be eligible for water related state grants and loans on or after July 16, 2016.

The City’s actual 2020 water use is lower than its 2020 water use target, therefore, demonstrating compliance with SBx7-7. In its 2015 UWMP, the City revised its baseline per capita water use calculations using 2010 U.S. Census data. Changes in the baseline calculations resulted in updated per capita water use targets.

The following sections describe the efforts by the City to comply with the requirements of SBx7-7 and efforts by MWDOC to assist retail agencies, including the formation of a Regional Alliance to provide additional flexibility to all water suppliers in Orange County. A discussion of programs implemented to support retail agencies in achieving their per capita water reduction goals is covered in Section 8 – Demand Management Measures of this UWMP.

Complimentary to information presented in this section are SBx7-7 Verification and Compliance Forms, a set of standardized tables required by DWR to demonstrate compliance with the Water Conservation Act in this 2020 UWMP (Appendix D) including calculations of recycled water used for groundwater recharge (indirect reuse) to offset a portion of the agency’s potable demand when meeting the regional as well as individual water use targets.

Baseline Water Use
The baseline water use is the City’s gross water use divided by its service area population, reported in GPCD. Gross water use is a measure of water that enters the distribution system of the supplier over a 12-month period with certain allowable exclusions. These exclusions are:
 Recycled water delivered within the service area
 Indirect recycled water
 Water placed in long term storage
 Water conveyed to another urban supplier
 Water delivered for agricultural use
 Process water
Water suppliers within the OCWD Groundwater Basin, including the City, have the option of choosing to deduct recycled water used for indirect potable reuse (IPR) from their gross water use to account for the City Council 27 – 52 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
5-14
recharge of recycled water into the OC Basin by OCWD, historically through Water Factory 21 (WF-21), and now by the Groundwater Replenishment System (GWRS).

Water suppliers must report baseline water use for two baseline periods, the 10- to 15-year baseline (baseline GPCD) and the five-year baseline (target confirmation) as described below.

5.1.1 Ten to 15-Year Baseline Period (Baseline GPCD)
The first step to calculating the City’s water use targets is to determine its base daily per capita water use (baseline water use). The baseline water use is calculated as a continuous (rolling) 10-year average during a period, which ends no earlier than December 31, 2004 and no later than December 31, 2010.

Water suppliers whose recycled water made up 10% or more of their 2008 retail water delivery can use up to a 15-year average for the calculation. The City did not have recycled water use in 2008; therefore, a 10-year baseline period is used.

The City’s baseline water use is 130 GPCD, obtained from the 10-year period July 1, 1995 to June 30, 2005.

5.1.2 Five-Year Baseline Period (Target Confirmation)
Water suppliers are required to calculate water use, in GPCD, for a five-year baseline period.

This number is used to confirm that the selected 2020 target meets the minimum water use reduction requirements. Regardless of the compliance option adopted by the City, it will need to meet a minimum water use target of 5% reduction from the five-year baseline water use. This five-year baseline water use is calculated as a continuous five-year average during a period, which ends no earlier than December 31, 2007 and no later than December 31, 2010. The City’s five-year baseline water use is 122 GPCD, obtained from the five-year period July 1, 2003 to June 30, 2008.

5.1.3 Service Area Population
The City’s service area boundaries correspond with the boundaries for a city or census designated place.

This allows the City to use service area population estimates prepared by the DOF. CDR is the entity which compiles population data for Orange County based on DOF data. The calculation of the City’s baseline water use and water use targets in the 2010 UWMP was based on the 2000 U.S. Census population numbers obtained from CDR. The baseline water use and water use targets in the 2015 UWMP were revised based on the 2010 U.S. Census population obtained from CDR in 2012.

That baseline remained in use in the 2020 calculations.

SBx7-7 Water Use Targets
In the 2020 UWMP, the City may update its 2020 water use target by selecting a different target method than what was used previously. The target methods and determination of the 2015 and 2020 targets are described below. The City selected Option 3 consistent with 2015 and maintained the same 2015 and 2020 target water uses as reported in its 2015 UWMP.

City Council 27 – 53 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
5-15

5.2.1 SBx7-7 Target Methods
DWR has established four target calculation methods for urban retail water suppliers to choose from.

The City is required to adopt one of the four options to comply with SBx7-7 requirements. The four options include:
 Option 1 requires a simple 20% reduction from the baseline by 2020 and 10% by 2015.  Option 2 employs a budget-based approach by requiring an agency to achieve a performance standard based on three metrics
o Residential indoor water use of 55 GPCD
o Landscape water use commensurate with the Model Landscape Ordinance o 10% reduction in baseline CII water use
 Option 3 is to achieve 95% of the applicable state hydrologic region target as set forth in the State’s 202020 Water Conservation Plan.
 Option 4 requires the subtraction of Total Savings from the baseline GPCD:
o Total savings includes indoor residential savings, meter savings, CII savings, and landscape and water loss savings.

With MWDOC’s assistance in the calculation of the City’s base daily per capita use and water use targets, the City selected to comply with Option 3 consistent with the option selected in 2010 and 2015.

5.2.2 2020 Targets and Compliance
Under Compliance Option 3, to achieve 95% of the South Coast Hydrologic Region target as set forth in the State’s 20x2020 Water Conservation Plan, the City’s 2020 target is 142 GPCD. In addition, the confirmed 2020 target needs to meet a minimum of 5% reduction from the five-year baseline water use which is 116 GPCD. Therefore, the City’s confirmed 2020 target is 116 GPCD as summarized in Table 5-1.

City Council 27 – 54 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
5-16
Table 5-1: Baselines and Targets Summary
DWR Submittal Table 5-1 Baselines and Targets Summary from SB X7-7 Verification Form Retail Supplier or Regional Alliance Only
Baseline
Period Start Year * End Year * Average Baseline GPCD*
Confirmed 2020
Target*
10-15 year 1996 2005 130
116
5 Year 2004 2008 122
*All cells in this table should be populated manually from the supplier's SBX7-7 Verification Form and reported inGallons per Capita per Day (GPCD)
NOTES:

The City’s actual 2020 consumption is 66 GPCD which is below its 2020 target of 116 GPCD (Table 5-2).

The City met its 2020 water use target and is in compliance with SBx7-7. As shown in Table 5-2, the City did not make any adjustments in its compliance for GPCD using weather normalization, economic adjustment, or extraordinary events.

City Council 27 – 55 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
5-17
Table 5-2: 2020 Compliance
DWR Submittal Table 5-2: 2020 Compliance from SB X7-7 2020 Compliance Form Retail Supplier or Regional Alliance Only
2020 GPCD
2020 Confirmed
Target GPCD*
Did Supplier
Achieve Targeted
Reduction for
2020? Y/N
Actual 2020
GPCD*
2020 TOTAL
Adjustments*
Adjusted 2020
GPCD* (Adjusted if
applicable)
66 0 66 116 Y
*All cells in this table should be populated manually from the supplier's SBX7-7 2020 Compliance Form and reported in Gallons per Capita per Day (GPCD)
NOTES:

Orange County 20x2020 Regional Alliance
A retail supplier may choose to meet the SBx7-7 targets on its own or it may form a regional alliance with other retail suppliers to meet the water use target as a region. Within a Regional Alliance, each retail water supplier will have an additional opportunity to achieve compliance under both an individual target and a regional target.
 If the Regional Alliance meets its water use target on a regional basis, all agencies in the alliance are deemed compliant.
 If the Regional Alliance fails to meet its water use target, each individual supplier will have an opportunity to meet their water use targets individually.

The City is a member of the Orange County 20x2020 Regional Alliance formed by MWDOC, its wholesaler. This regional alliance consists of 29 retail agencies in Orange County as described in MWDOC’s 2020 UWMP. MWDOC provides assistance in the calculation of each retail agency’s baseline water use and water use targets.

In 2020, the regional baseline and targets were revised from 2015 to account for any revisions made by the retail agencies to their individual 2015 and 2020 targets. The regional water use target is the weighted average of the individual retail agencies’ targets (by population). The Orange County 20x2020 Regional Alliance weighted 2020 target is 159 GPCD. The actual 2020 water use in the region is 109 GPCD, i.e., the region met its 2020 GPCD goal.

City Council 27 – 56 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-1
6 WATER SUPPLY CHARACTERIZATION
As a counterpart to Section 4’s Water Use Characterization, this section characterizes the City’s water supply. This section includes identification and quantification of water supply sources through 2045, descriptions of each water supply source and their management, opportunities for exchanges and transfers, and discussion regarding any planned future water supply projects. This section also includes the energy intensity of the water service, a new UWMP requirement.

Water Supply Overview
The City meets all of its demands with a combination of imported water, local groundwater, and recycled water. The City works together with two primary agencies, MET and OCWD, to ensure a safe and reliable water supply that will continue to serve the community in periods of drought and shortage. The sources of imported water supplies include water from the Colorado River and the State Water Project (SWP) provided by MET.

The City’s main source of water supply is groundwater from the Orange County Groundwater Basin.

Imported water and recycled water make up the rest of the City’s water supply portfolio. In FY 2019-20, the City relied on 76% groundwater, 23% imported water, and 1% recycled water (Table 6-1).

It is projected that by 2045, the water supply portfolio will change to approximately to 84% groundwater, 15% imported water, and 1% recycled water (Table 6-2 and Figure 6-1). Note that these representations of supply match the projected demand. However, the City has a ten-year purchase agreement with MET that allows the City to purchase significantly more MET water, should the need arise.

This agreement is further discussed is Section 6.2 Additionally, GWRS supplies are included as part of groundwater pumping numbers.

The following subsections provide a detailed discussion of the City’s water sources as well as the future water supply portfolio for the next 25 years.

City Council 27 – 57 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-2
Table 6-1: Retail: Water Supplies – Actual
DWR Submittal Table 6-8 Retail: Water Supplies — Actual Water Supply Additional Detail on
Water Supply
2020
Actual Volume
(AF) Water Quality
Groundwater (not desalinated) Orange County
Groundwater Basin 25,591 Drinking Water
Purchased or Imported Water MET 7,649 Drinking Water
Recycled Water Green Acres Project
(OCWD) 249 Recycled Water
Total 33,489
NOTES:

Source - MWDOC, 2020
City Council 27 – 58 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-3
Table 6-2: Retail: Water Supplies – Projected
DWR Submittal Table 6-9 Retail: Water Supplies — Projected Water Supply Additional Detail
on Water Supply
Projected Water Supply (AF)
Report To the Extent Practicable
2025 2030 2035 2040 2045
Reasonably
Available
Volume
Reasonably
Available
Volume
Reasonably
Available
Volume
Reasonably
Available
Volume
Reasonably
Available
Volume
Groundwater (not
desalinated)
Orange County
Groundwater Basin 28,588 29,024 28,799 28,551 28,541
Purchased or
Imported Water MET 5,045 5,122 5,082 5,038 5,037
Recycled Water OCWD 249 249 249 249 249
Total 33,882 34,395 34,130 33,838 33,827
NOTES:

Source - CDM Smith, 2021
Groundwater volumes assume OCWD’s basin production percentage (BPP) to be 85% for all years. Volumes of groundwater and imported water may vary depending on OCWD's actual BPP projections, which are established annually. This table only considers direct use of recycled water - this does not include indirect potable recharge.

Per the ten-year (CY 2015 through CY 2024) purchase agreement with MET, the City is contractually able to purchase more MET water, should the need arise.

City Council 27 – 59 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-4
Figure 6-1: City’s Projected Water Supply Sources (AF)
Imported Water
The City supplements its local water supply with imported water purchased from MET. In FY 2019-20, the City relied on approximately 7,649 AFY – approximately 23% of the City’s water supply portfolio for FY 2019-20 – of imported water from MET to meet its demands. MET’s principal sources of water are the Colorado River via the Colorado River Aqueduct (CRA) and the Lake Oroville watershed in Northern California through the SWP. For Orange County, the water obtained from these sources is treated at the Robert B. Diemer Filtration Plant located in Yorba Linda. Typically, the Diemer Filtration Plant receives a blend of Colorado River water from Lake Mathews through the MET Lower Feeder and SWP water through the Yorba Linda Feeder. The City currently maintains seven imported water connections to the MET system.

In December 2002, the City entered into a 10-year water purchase agreement with MET. This water purchase agreement is a 10-year commitment to purchase a minimum quantity of water on an annual basis and a minimum quantity of water over the course of the 10-year commitment. In return, the City is able to purchase a greater percentage of MET water at a lower, Tier 1 rate. This purchase agreement was renewed, and the current ten-year term is effective January 1, 2015 through December 31, 2024.

The City’s annual purchase commitment average is 8,086 AF, with a maximum average annual value set at 19,617 AF.

City Council 27 – 60 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-5

6.2.1 Colorado River Supplies
Background
The Colorado River was MET’s original source of water after MET’s establishment in 1928. The CRA, which is owned and operated by MET, transports water from the Colorado River to its terminus Lake Mathews, in Riverside County. The actual amount of water per year that may be conveyed through the CRA to MET’s member agencies is subject to the availability of Colorado River water. Approximately 40 million people rely on the Colorado River and its tributaries for water with 5.5 million acres of land using Colorado River water for irrigation. The CRA includes supplies from the implementation of the Quantification Settlement Agreement and its related agreements to transfer water from agricultural agencies to urban uses. The 2003 Quantification Settlement Agreement enabled California to implement major Colorado River water conservation and transfer programs, in order to stabilize water supplies and reduce the state’s demand on the river to its 4.4 million acre-feet (MAF) entitlement. Colorado River transactions are potentially available to supply additional water up to the CRA capacity of 1.25 MAF on an as-needed basis. Water from the Colorado River or its tributaries is available to users in California, Arizona, Colorado, Nevada, New Mexico, Utah, Wyoming, and Mexico. California is apportioned the use of 4.4 MAF of water from the Colorado River each year plus one-half of any surplus that may be available for use collectively in Arizona, California, and Nevada. In addition, California has historically been allowed to use Colorado River water apportioned to, but not used by, Arizona or Nevada. MET has a basic entitlement of 550,000 AFY of Colorado River water, plus surplus water up to an additional 662,000 AFY when the following conditions exists (MET, 2021):
 Water is unused by the California holders of priorities 1 through 3  Water is saved by the Palo Verde land management, crop rotation, and water supply program  When the U.S. Secretary of the Interior makes available either one or both of the following:
o Surplus water
o Colorado River water that is apportioned to but unused by Arizona and/or Nevada.

Current Conditions and Supply
MET has not received surplus water for a number of years. The Colorado River supply faces current and future imbalances between water supply and demand in the Colorado River Basin due to long-term drought conditions. Analysis of historical records suggests a potential change in the relationship between precipitation and runoff in the Colorado River Basin. The past 21 years (1999-2020) have seen an overall drying trend, even though the period included several wet or average years. The river basin has substantial storage capacity, but the significant reduction in system reservoir storage in the last two decades is great enough to consider the period a drought (DWR, 2020a). At the close of 2020, system storage was at or near its lowest since 2000, so there is very little buffer to avoid a shortage from any future period of reduced precipitation and runoff (MET, 2021). Looking ahead, the long-term imbalance in the Colorado River Basin’s future supply and demand is projected to be approximately 3.2 MAF by the year 2060 (USBR, 2012).

Over the years, MET has helped fund and implement various programs to improve Colorado River supply reliability and help resolve the imbalance between supply and demand. Implementation of such programs City Council 27 – 61 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-6
have contributed to achievements like achieving a record low diversion of the Colorado River in 2019, a level not seen since the 1950s. Colorado River water management programs include:
 Imperial Irrigation District / MET Conservation Program – Under agreements executed in 1988 and 1989, this program allows MET to fund water efficiency improvements within Imperial Irrigation District’s service area in return for the right to divert the water conserved by those investments. An average of 105,000 AFY of water has been conserved since the program’s implementation.
 Palo Verde Land Management, Crop Rotation, and Water Supply Program – Authorized in 2004, this 35-year program allows MET to pay participating farmers to reduce their water use, and for MET to receive the saved water. Over the life of the program, an average of 84,500 AFY has been saved and made available to MET.
 Bard Seasonal Fallowing Program – Authorized in 2019, this program allows MET to pay participating farmers in Bard to reduce their water use between the late spring and summer months of selected years, which provides up to 6,000 AF of water to be available to MET in certain years.
 Management of MET-Owned Land in Palo Verde – Since 2001, MET has acquired approximately 21,000 acres of irrigable farmland that are leased to growers, with incentives to grow low water-using crops and experiment with low water-consumption practices. If long-term water savings are realized, MET may explore ways to formally account them for Colorado River supplies.
 Southern Nevada Water Authority (SNWA) and MET Storage and Interstate Release Agreement – Entered in 2004, this agreement allows SNWA to store its unused, conserved water with MET, in exchange for MET to receive additional Colorado River water supply. MET has relied on the additional water during dry years, especially during the 2011-2016 California drought, and SNWA is not expected to call upon MET to return water until after 2026.  Lower Colorado Water Supply Projects – Authorized in 1980s, this project provides up to 10,000 AFY of water to certain entities that do not have or have insufficient rights to use Colorado River water. A contract executed in 2007 allowed MET to receive project water left unused by the project contractors along the River – nearly 10,000 AF was received by MET in 2019 and is estimated for 2020.
 Exchange Programs – MET is involved in separate exchange programs with the United States Bureau of Reclamation, which takes place at the Colorado River Intake and with San Diego County Water Authority (SDCWA), which exchanges conserved Colorado River water.  Lake Mead Storage Program – Executed in 2006, this program allows MET to leave excessively conserved water in Lake Mead, for exclusive use by MET in later years.  Quagga Mussel Control Program – Developed in 2007, this program introduced surveillance activities and control measures to combat quagga mussels, an invasive species that impact the Colorado River’s water quality.

City Council 27 – 62 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-7
 Lower Basin Drought Contingency Plan – Signed in 2019, this agreement incentivizes storage in Lake Mead through 2026 and overall, it increases MET’s flexibility to fill the CRA as needed (MET, 2021).

Future Programs / Plans
The Colorado River faces long-term challenges of water demands exceeding available supply with additional uncertainties due to climate change. Climate change impacts expected in the Colorado River Basin include the following:
 More frequent, more intense, and longer lasting droughts, which will result in water deficits  Continued dryness in the Colorado River Basin, which will increase the likelihood of triggering a first-ever shortage in the Lower Basin
 Increased temperatures, which will affect the percentage of precipitation that falls as rain or snow, as well as the amount and timing of mountain snowpack (DWR, 2020b) Acknowledging the various uncertainties regarding reliability, MET plans to continue ongoing programs, such as those listed earlier in this section. Additionally, MET supports increasing water recycling in the Colorado River Basin and is in the process of developing additional transfer programs for the future (MET, 2021).

6.2.2 State Water Project Supplies
Background
The SWP consists of a series of pump stations, reservoirs, aqueducts, tunnels, and power plants operated by DWR and is an integral part of the effort to ensure that business and industry, urban and suburban residents, and farmers throughout much of California have sufficient water. Water from the SWP originates at Lake Oroville, which is located on the Feather River in Northern California. Much of the SWP water supply passes through the Delta. The SWP is the largest state-built, multipurpose, user-financed water project in the United States. Nearly two-thirds of residents in California receive at least part of their water from the SWP, with approximately 70% of SWP’s contracted water supply going to urban users and 30% to agricultural users. The primary purpose of the SWP is to divert and store water during wet periods in Northern and Central California and distribute it to areas of need in Northern California, the San Francisco Bay area, the San Joaquin Valley, the Central Coast, and SSouthern California (MET, 2021).

The Delta is key to the SWP’s ability to deliver water to its agricultural and urban contractors. All but five of the 29 SWP contractors receive water deliveries below the Delta (pumped via the Harvey O. Banks or Barker Slough pumping plants). However, the Delta faces many challenges concerning its long-term sustainability such as climate change posing a threat of increased variability in floods and droughts.

Sea level rise complicates efforts in managing salinity levels and preserving water quality in the Delta to ensure a suitable water supply for urban and agricultural use. Furthermore, other challenges include continued subsidence of Delta islands, many of which are below sea level, and the related threat of a catastrophic levee failure as the water pressure increases, or as a result of a major seismic event.

Current Conditions and Supply
City Council 27 – 63 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-8
“Table A” water is the maximum entitlement of SWP water for each water contracting agency. Currently, the combined maximum Table A amount is 4.17 million acre-feet per year (MAFY). Of this amount,

4.13 MAFY is the maximum Table A water available for delivery from the Delta. On average, deliveries are approximately 60% of the maximum Table A amount (DWR, 2020b).

SWP contractors may receive Article 21 water on a short-term basis in addition to Table A water if requested. Article 21 of SWP contracts allows contractors to receive additional water deliveries only under specific conditions, generally during wet months of the year (December through March). Because a SWP contractor must have an immediate use for Article 21 supply or a place to store it outside of the SWP, there are few contractors like MET that can access such supplies.

Carryover water is SWP water allocated to an SWP contractor and approved for delivery to the contractor in a given year, but not used by the end of the year. The unused water is stored in the SWP’s share of San Luis Reservoir, when space is available, for the contractor to use in the following year.

Turnback pool water is Table A water that has been allocated to SWP contractors that has exceeded their demands. This water can then be purchased by another contractor depending on its availability.

SWP Delta exports are the water supplies that are transferred directly to SWP contractors or to San Luis Reservoir storage south of the Delta via the Harvey O. Banks pumping plant. Estimated average annual Delta exports and SWP Table A water deliveries have generally decreased since 2005, when Delta export regulations affecting SWP pumping operations became more restrictive due to federal biological opinions (Biops). The Biops protect species listed as threatened or endangered under the federal and state Endangered Species Acts (ESAs) and affect the SWP’s water delivery capability because they restrict SWP exports in the Delta and include Delta outflow requirements during certain times of the year, thus reducing the available supply for export or storage.

Before being updated by the 2019 Long-Term Operations Plan, the prior 2008 and 2009 Biops resulted in an estimated reduction in SWP deliveries of 0.3 MAF during critically dry years to 1.3 MAF in above normal water years as compared to the previous baseline. However, the 2019 Long-Term Operations Plan and Biops are expected to increase SWP deliveries by an annual average of 20,000 AF as compared to the previous Biops (MET, 2021). Average Table A deliveries decreased in the 2019 SWP Final Delivery Capability Report compared to 2017, mainly due to the 2018 Coordinated Operation Agreement (COA) Addendum and the increase in the end of September storage target for Lake Oroville.

Other factors that also affected deliveries included changes in regulations associated with the Incidental Take Permit (ITP) and the Reinitiation of Consultation for Long-Term Operations (RoC on LTO), a shift in Table A to Article 21 deliveries which occurred due to higher storage in SWP San Luis, and other operational updates to the SWP and federal Central Valley Project (CVP) (DWR, 2020b). Since 2005, there are similar decreasing trends for both the average annual Delta exports and the average annual Table A deliveries (Table 6-3).

City Council 27 – 64 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-9
Table 6-3: MET SWP Program Capabilities
Year Average Annual Delta
Exports (MAF)
Average Annual Table A
Deliveries (MAF)
2005 2.96 2.82
2013 2.61 2.55
2019 2.52 2.41
Percent Change* -14.8% -14.3%
*Percent change is between the years 2019 and 2005.

Ongoing regulatory restrictions, such as those imposed by the Biops on the effects of SWP and the CVP operations on certain marine life, also contribute to the challenge of determining the SWP’s water delivery reliability. In dry, below-normal conditions, MET has increased the supplies delivered through the California Aqueduct by developing flexible CVP/SWP storage and transfer programs. The goal of the storage/transfer programs is to develop additional dry-year supplies that can be conveyed through the available Harvey O. Banks pumping plant capacity to maximize deliveries through the California Aqueduct during dry hydrologic conditions and regulatory restrictions. In addition, SWRCB has set water quality objectives that must be met by the SWP including minimum Delta outflows, limits on SWP and CVP Delta exports, and maximum allowable salinity level.

The following factors affect the ability to estimate existing and future water delivery reliability:
 Water availability at the source: Availability can be highly variable and depends on the amount and timing of rain and snow that fall in any given year. Generally, during a single-dry year or two, surface and groundwater storage can supply most water deliveries, but multiple-dry years can result in critically low water reserves. Fisheries issues can also restrict the operations of the export pumps even when water supplies are available.
 Water rights with priority over the SWP: Water users with prior water rights are assigned higher priority in DWR’s modeling of the SWP’s water delivery reliability, even ahead of SWP Table A water.
 Climate change: Mean temperatures are predicted to vary more significantly than previously expected. This change in climate is anticipated to bring warmer winter storms that result in less snowfall at lower elevations, reducing total snowpack. From historical data, DWR projects that by 2050, the Sierra snowpack will be reduced from its historical average by 25 to 40%. Increased precipitation as rain could result in a larger number of “rain-on-snow” events, causing snow to melt earlier in the year and over fewer days than historically, affecting the availability of water for pumping by the SWP during summer. Furthermore, water quality may be adversely affected due to the anticipated increase in wildfires. Rising sea levels may result in potential pumping cutbacks on the SWP and CVP.
 Regulatory restrictions on SWP Delta exports: The Biops protect special-status species such as delta smelt and spring- and winter-run Chinook salmon and imposed substantial constraints on City Council 27 – 65 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-10
Delta water supply operations through requirements for Delta inflow and outflow and export pumping restrictions. Restrictions on SWP operations imposed by state and federal agencies contribute substantially to the challenge of accurately determining the SWP’s water delivery reliability in any given year (DWR, 2020b).
 Ongoing environmental and policy planning efforts: Governor Gavin Newsom ended California WaterFix in May 2019 and announced a new approach to modernize Delta Conveyance through a single tunnel alternative. The EcoRestore Program aims to restore at least 30,000 acres of Delta habitat, with the near-term goal of making significant strides toward that objective by 2020 (DWR, 2020b).
 Delta levee failure: The levees are vulnerable to failure because most original levees were simply built with soils dredged from nearby channels and were not engineered. A breach of one or more levees and island flooding could affect Delta water quality and SWP operations for several months. When islands are flooded, DWR may need to drastically decrease or even cease SWP Delta exports to evaluate damage caused by salinity in the Delta.

Operational constraints likely will continue until a long-term solution to the problems in the Bay-Delta is identified and implemented. New Biops for listed species under the Federal ESA or by the California Department of Fish and Game’s issuance of incidental take authorizations under the Federal ESA and California ESA might further adversely affect SWP and CVP operations. Additionally, new litigation, listings of additional species or new regulatory requirements could further adversely affect SWP operations in the future by requiring additional export reductions, releases of additional water from storage or other operational changes impacting water supply operations.

Future Programs / Plans
MET’s Board approved a Delta Action Plan in June 2007 that provides a framework for staff to pursue actions with other agencies and stakeholders to build a sustainable Delta and reduce conflicts between water supply conveyance and the environment. The Delta Action Plan aims to prioritize immediate short-term actions to stabilize the Delta while an ultimate solution is selected, and mid-term steps to maintain the Delta while a long-term solution is implemented. Currently, MET is working towards addressing four elements: Delta ecosystem restoration, water supply conveyance, flood control, protection and storage development.

In May 2019, Governor Newsom ended California WaterFix, announced a new approach to modernize Delta Conveyance through a single tunnel alternative, and released Executive Order 10-19 that directed state agencies to inventory and assess new planning for the project. DWR then withdrew all project approvals and permit applications for California WaterFix, effectively ending the project. The purpose of the Delta Conveyance Project (DCP) gives rise to several project objectives (MET, 2021). In proposing to make physical improvements to the SWP Delta conveyance system, the project objectives are:
 To address anticipated rising sea levels and other reasonably foreseeable consequences of climate change and extreme weather events.
 To minimize the potential for public health and safety impacts from reduced quantity and quality of SWP water deliveries, and potentially CVP water deliveries, south of the Delta resulting from a major earthquake that causes breaching of Delta levees and the inundation of brackish water into the areas in which existing pumping plants operate.

City Council 27 – 66 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-11
 To protect the ability of the SWP, and potentially the CVP, to deliver water when hydrologic conditions result in the availability of sufficient amounts, consistent with the requirements of state and federal law.
 To provide operational flexibility to improve aquatic conditions in the Delta and better manage risks of further regulatory constraints on project operations.

6.2.3 Storage
Storage is a major component of MET’s dry year resource management strategy. MET’s likelihood of having adequate supply capability to meet projected demands, without implementing its Water Supply Allocation Plan (WSAP), is dependent on its storage resources. Due to the pattern of generally drier hydrology, the groundwater basins and local reservoirs have dropped to low operating levels and remain below healthy storage levels. For example, the Colorado River Basin’s system storage at the close of 2020, was at or near its lowest since 2000, so there is very little buffer to avoid a shortage from any future period of reduced precipitation and runoff (MET, 2021).

MET stores water in both DWR and MET surface water reservoirs. MET’s surface water reservoirs are Lake Mathews, Lake Skinner, and Diamond Valley Lake, which have a combined storage capacity of over 1 MAF. Approximately 650,000 AF are stored for seasonal, regulatory, and drought use, while approximately 370,000 AF are stored for emergency use.

MET also has contractual rights to DWR surface Reservoirs, such as 65 TAF of flexible storage at Lake Perris (East Branch terminal reservoir) and 154 TAF of flexible storage at Castaic Lake (West Branch terminal reservoir) that provides MET with additional options for managing SWP deliveries to maximize the yield from the project. This storage can provide MET with up to 44 TAF of additional supply over multiple dry years, or up to 219 TAF to Southern California in a single dry year (MET, 2021).

MET endeavors to increase the reliability of water supplies through the development of flexible storage and transfer programs including groundwater storage (MET, 2021). These include:
 Lake Mead Storage Program: Executed in 2006, this program allows MET to leave excessively conserved water in Lake Mead, for exclusive use by MET in later years. MET created “Intentionally Created Surplus” (ICS) water in 2006-2007, 2009-2012, and 2016-2019, and withdrew ICS water in 2008 and 2013-2015. As of January 1, 2021, MET had a total of 1.3 MAF of Extraordinary Conservation ICS water.
 Semitropic Storage Program: The maximum storage capacity of the program is 350 TAF, and the minimum and maximum annual yields available to MET are 34.7 TAF and 236.2 TAF, respectively. The specific amount of water MET can expect to store in and subsequently receive from the program depends on hydrologic conditions, any regulatory requirements restricting MET’s ability to export water for storage and demands placed by other program participants.

During wet years, MET has the discretion to use the program to store portions of its SWP supplies which are in excess, and during dry years, the Semitropic Water Storage District returns MET’s previously stored water to MET by direct groundwater pump-in or by exchange of surface water supplies.
 Arvin-Edison Storage Program: The storage program is estimated to deliver 75 TAF, and the specific amount of water MET can expect to store in and subsequently receive from the program City Council 27 – 67 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-12
depends on hydrologic conditions and any regulatory requirements restricting MET’s ability to export water for storage. During wet years, MET has the discretion to use to program to store portions of its SWP supplies which are in excess, and during dry years, the Arvin-Edison Water Storage District returns MET’s previously stored water to MET by direct groundwater pump-in or by exchange of surface water supplies.
 Antelope Valley-East Kern (AVEK) Water Agency Exchange and Storage Program: Under the exchange program, for every two AF MET receives, MET returns 1 AF back to AVEK, and MET will also be able to store up to 30 TAF in the AVEK’s groundwater basin, with a dry-year return capability of 10 TAF.
 High Desert Water Bank Program: Under this program, MET will have the ability to store up to 280 TAF of its SWP Table A or other supplies in the Antelope Valley groundwater basin, and in exchange will provide funding for the construction of monitoring and production wells, turnouts from the California Aqueduct, pipelines, recharge basins, water storage, and booster pump facilities. The project is anticipated to be in operation by 2025.  Kern-Delta Water District Storage Program: This groundwater storage program has 250 TAF of storage capacity, and water for storage can either be directly recharged into the groundwater basin or delivered to Kern-Delta Water District farmers in lieu of pumping groundwater. During dry years, the Kern-Delta Water District returns MET’s previously stored water to MET by direct groundwater pump-in return or by exchange of surface water supplies.  Mojave Storage Program: MET entered into a groundwater banking and exchange transfer agreement with Mojave Water Agency that allows for the cumulative storage of up to 390 TAF.

The agreement allows for MET to store water in an exchange account for later return.

6.2.4 Planned Future Sources
Beyond the programs highlighted in Sections 6.2.1 through 6.2.3, MET continues to invest in efforts to meet its goal of long-term regional water supply reliability, focusing on the following:
 Continuing water conservation
 Developing water supply management programs outside of the region  Developing storage programs related to the Colorado River and the SWP  Developing storage and groundwater management programs within the Southern California region
 Increasing water recycling, groundwater recovery, stormwater and seawater desalination  Pursuing long-term solutions for the ecosystem, regulatory and water supply issues in the California Bay-Delta (MET, 2021)
Groundwater
Historically, local groundwater has been the cheapest and most reliable source of supply for the City.

The City draws water from the Basin. In FY 2019-20, the City relied on approximately 25,591 AFY – City Council 27 – 68 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-13
approximately 76% of the City’s water supply portfolio for FY 2019-20 – from the OC Basin to meet its demands.

This section describes the OC Basin and the management measures taken by OCWD, the basin manager to optimize local supply and minimize overdraft. This section also provides information on historical groundwater production as well as a 25-year projection of the City's groundwater supply.

The OCWD was formed in 1933 by a special legislative act of the California State Legislature to protect and manage the County's vast, natural, groundwater supply using the best available technology and defend its water rights to the OC Basin. This legislation is found in the State of California Statutes, Water – Uncodified Acts, Act 5683, as amended. The OC Basin is managed by OCWD under the Act, which functions as a statutorily-imposed physical solution. The OCWD Management Area includes approximately 89% of the land area of the OC Basin, and 98% of all groundwater production occurs within the area. OCWD monitors the basin by collecting groundwater elevation and quality data from wells and manages an electronic database that stores water elevation, water quality, production, recharge, and other data on over 2,000 wells and facilities within and outside OCWD boundaries (City of La Habra et al., 2017).

Groundwater levels are managed within a safe basin operating range to protect the long-term sustainability of the OC Basin and to protect against land subsidence. OCWD regulates groundwater levels in the OC Basin by regulating the annual amount of pumping and setting the Basin Production Percentage (BPP) for the water year. As defined in the District Act, the BPP is the ratio of water produced from groundwater supplies within the district to all water produced within the district from both supplemental sources and groundwater within the district (OCWD, 2020). On a per agency basis including the City, the BPP is the total percentage amount of groundwater allowed to be produced towards that agency’s or city’s demand. For the City, the remaining percentage of potable water demand is achieved through MET water.

6.3.1 Historical Groundwater Production
The City pumps groundwater through its 21 active operating groundwater wells. One of the City’s wells is currently offline but is being rehabilitated with goals to be completed by the end of 2021. The City has experienced relative stability in the groundwater volume pumped for the last five years (Table 6-4).

City Council 27 – 69 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-14
Table 6-4: Retail: Groundwater Volume Pumped
DWR Submittal Table 6-1 Retail: Groundwater Volume Pumped Supplier does not pump groundwater.

The supplier will not complete the table below.

All or part of the groundwater described below is desalinated.

Groundwater Type Location or Basin Name 2016 2017 2018 2019 2020 Alluvial Basin Orange County
Groundwater Basin 24,722 24,357 21,327 25,505 25,591
TOTAL 24,722 24,357 21,327 25,505 25,591
NOTES:

Source: MWDOC, 2020

6.3.2 Basin Characteristics
The OC Basin underlies the northerly half of Orange County beneath broad lowlands. The OC Basin, managed by OCWD, covers an area of approximately 350 square miles, bordered by the Coyote and Chino Hills to the north, the Santa Ana Mountains to the northeast, and the Pacific Ocean to the southwest. The OC Basin boundary extends to the Orange County-Los Angeles Line to the northwest, where groundwater flows across the county line into the Central Groundwater Basin of Los Angeles County. A map of the OC Basin is shown on Figure 6-2. The total thickness of sedimentary rocks in the OC Basin is over 20,000 feet, with only the upper 2,000 to 4,000 feet containing fresh water.

The OC Basin’s full volume is approximately 66 MAF.

There are three major aquifer systems that have been subdivided by OCWD, the Shallow Aquifer System, the Principal Aquifer System, and the Deep Aquifer System. These three aquifer systems are hydraulically connected as groundwater is able to flow between each other through intervening aquitards or discontinuities in the aquitards. The Shallow Aquifer system occurs from the surface to approximately 250 feet below ground surface. Most of the groundwater from this aquifer system is pumped by small water systems for industrial and agricultural use. The Principal Aquifer system occurs at depths between 200 and 1,300 feet below ground surface. Over 90% of groundwater production is from wells that are screened within the Principal Aquifer system. Only a minor amount of groundwater is pumped from the Deep Aquifer system, which underlies the Principal Aquifer system and is up to 2,000 feet deep in the center of the OC Basin.

Per- and polyfluoroalkyl substances (PFAS) are a group of thousands of manmade chemicals that includes perfluorooctanoic acid (PFOA) and perfluorooctane sulfonate (PFOS). PFAS compounds were once commonly used in many products including, among many others, stain- and water-repellent fabrics, nonstick products (e.g., Teflon), polishes, waxes, paints, cleaning products, and fire-fighting foams.

City Council 27 – 70 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-15
Beginning in the summer of 2019, the California State Division of Drinking Water (DDW) began requiring testing for PFAS compounds in some groundwater production wells in the OCWD area.

Groundwater production in FY 2019-20 was expected to be approximately 325,000 AF but declined to 286,550 AF primarily due to PFAS impacted wells being turned off around February 2020.

OCWD expects groundwater production to be in the area of 245,000 AF in FY 2020-21 due to the currently idled wells and additional wells being impacted by PFAS and turned off. As PFAS treatment systems are constructed, OCWD expects total annual groundwater production to slowly increase back to normal levels (310,000 to 330,000 AF) (OCWD, 2020).

City Council 27 – 71 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-16
Figure 6-2: Map of the OC Basin
City Council 27 – 72 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-17

6.3.3 Sustainable Groundwater Management Act
In 2014, the State of California adopted the Sustainable Groundwater Management Act (SGMA) to help manage its groundwater sustainably, and limit adverse effects such as significant groundwater-level declines, land subsidence, and water quality degradation. SGMA requires all high- and medium-priority basins, as designated by DWR, be sustainably managed. DWR designated the non-adjudicated Coastal Plain of OC Basin (“Basin 8-1” or “Basin”) as a medium-priority basin, primarily due to heavy reliance on the Basin’s groundwater as a source of water supply. Compliance with SGMA can be achieved in one of two ways:
1) A Groundwater Sustainability Agency (GSA) is formed, and a Groundwater Sustainability Plan (GSP) is adopted, or
2) Special Act Districts created by statute, such as OCWD, and other agencies may prepare and submit an Alternative to a GSP (City of La Habra et al., 2017) The agencies within Basin 8-1, led by OCWD collaborated to submit an Alternative to a GSP in 2017, titled the “Basin 8-1 Alternative” to meet SGMA compliance. This document will be updated every five years. The current (2017) version is included in Appendix G.

6.3.4 Basin Production Percentage
Background
The OC Basin is not adjudicated and as such, pumping from the OC Basin is managed through a process that uses financial incentives to encourage groundwater producers to pump a sustainable amount of water. The framework for the financial incentives is based on establishing the BPP, the percentage of each Producer’s total water supply that comes from groundwater pumped from the OC Basin.

Groundwater production at or below the BPP is assessed the Replenishment Assessment (RA).

While there is no legal limit as to how much an agency pumps from the OC Basin, there is a financial disincentive to pump above the BPP. The BPP is set uniformly for all Producers by OCWD on an annual basis. Agencies that pump above the BPP are charged the RA plus the Basin Equity Assessment (BEA).

The BEA is presently calculated so that the cost of groundwater production is equivalent to the cost of importing potable water supplies. This approach serves to discourage, but not eliminate, production above the BPP, and the BEA can be increased to discourage production above the BPP if necessary.

The BPP is set based on groundwater conditions, availability of imported water supplies, and Basin management objectives. The supplies available for recharge must be estimated for a given year.

The supplies of recharge water that are estimated are: 1) Santa Ana River stormflow, 2) Natural incidental recharge, 3) Santa Ana River baseflow, 4) GWRS supplies, and 5) other supplies such as imported water and recycled water purchased for the Alamitos Barrier. The BPP is a major factor in determining the cost of groundwater production from the OC Basin for that year. The BPP set for Water Year 2021-22 is 77%.

BPP Adjustments for Basin Management
OCWD has established management guidelines that are used to establish future BPPs, as seen in Table 6-5. Raising or lowering the BPP allows OCWD to manage the amount of pumping from the basin. OCWD has a policy to manage the groundwater basin within a sustainable range to avoid adverse impacts to the basin. OCWD seeks to maintain some available storage space in the basin to maximize surface water City Council 27 – 73 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-18
recharge when such supplies are available, especially in relatively wet years. By keeping the basin relatively full during wet years, and for as long as possible in years with near-normal recharge, the maximum amount of groundwater could be maintained in storage to support pumping in future drought conditions. During dry hydrologic years when less water would be available for recharge, the BPP could be lowered to maintain groundwater storage levels. A component of OCWD’s BPP policy is to manage the groundwater basin so that the BPP will not fluctuate more that 5 percent from year to year.

Based on most recent modeling of water supplies available for groundwater recharge and water demand forecasts, OCWD anticipates being able to sustain the BPP at 85% starting in 2025. The primary reasons for the higher BPP are the expected completion of the GWRS Final Expansion (GWRSFE) in 2023 and the relatively low water demands of approximately 400,000 AFY.

Modeling and forecasts generate estimates based on historical averages. Consequently, forecasts use average hydrologic conditions which smooth the dynamic and unpredictable local hydrology. Variations in local hydrology are the most significant impact to supplies of water available to recharge the groundwater basin. The BPP projection of 85% is provided based upon average annual rainfall weather patterns. If the City were to experience a relatively dry period, the BPP could be reduced to maintain water storage levels, by as much as five percent.

Table 6-5: Management Actions Based on Changes in Groundwater Storage Available Storage Space
(amount below full basin
condition, AF)
Considered Basin Management Action
Less than 100,000 Raise BPP
100,000 to 300,000 Maintain and / or raise BPP towards 75% goal 300,000 to 350,000 Seek additional supplies to refill basin and / or lower the BPP Greater than 350,000 Seek additional supplies to refill basin and lower the BPP BPP Exemptions
In some cases, OCWD encourages pumping and treating groundwater that does not meet drinking water standards in order to protect water quality. This is achieved by using a financial incentive called the BEA Exemption. A BEA Exemption is used to promote beneficial uses of poor-quality groundwater and reduce or prevent the spread of poor-quality groundwater into non-degraded aquifer zones. OCWD uses a partial or total exemption of the BEA to compensate a qualified participating agency or Producer for the costs of treating poor quality groundwater, which typically include capital, interest and operations and maintenance costs for treatment facilities. When OCWD authorizes a BEA exemption for a project, it is obligated to provide the replenishment water for the production above the BPP and forgo the BEA revenue that OCWD would otherwise receive from the producer (City of La Habra et al., 2017).

Similarly, for proactive water quality management, OCWD exempts a portion of the BEA for their Coastal Pumping Transfer Program (CPTP). The CPTP encourages inland groundwater producers to increase pumping and coastal producers to decrease pumping in order to reduce the groundwater basin drawdown City Council 27 – 74 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-19
at the coast and protect against seawater intrusion. Inland pumpers can pump above the BPP without having to pay the full BEA for the amount pumped above the BPP (OCWD, 2015). Coastal pumpers receive BEA revenue from OCWD to assist in offsetting their additional water supply cost from taking less groundwater.

6.3.4.1 2020 OCWD Groundwater Reliability Plan
In order to adapt to the substantial growth in water demands in OCWD’s management area, it is paramount to anticipate and understand future water demands and develop projects to increase future water supplies proactively to match demands. The GRP is a continuation of these planning efforts that estimates the OC Basin’s sustainable average annual production and extrapolates water needs of the OC Basin by combining recently completed water demand projections and modeling of Santa Ana River flows available for recharge. These data will be used to evaluate future water supply projects and guide management of the OC Basin. OCWD is currently developing the GRP, and the first public draft is expected to be available May 2021.

Current water demand projections show a relatively slow increase over the 25-year planning horizon, which is generally of similar magnitude as the additional production from the GWRSFE in early 2023.

Once complete, the GWRSFE will increase capacity from 100,000 to 134,000 AFY of high-quality recycled water. This locally controlled, drought proof supply of water reduces the region’s dependance on imported water.

Historically, the Santa Ana River has served as the primary source of water to recharge the OC Basin.

To determine the availability of future Santa Ana River flows, OCWD utilized surface water flow modeling of the upper watershed. Modeling was developed to predict the impacts future stormwater capture and wastewater recycling projects in the upper watershed would have on future Santa Ana River flow rates at Prado Dam. Santa Ana River base flows are expected to decrease as more water recycling projects are built in the upper watershed. OCWD continues to work closely with the US Army Corps of Engineers to temporarily impound and slowly release up to approximately 20,000 AF of stormwater in the Prado Dam Conservation Pool. To some extent, the losses in baseflow are partially offset through the capture of additional stormwater held in the Prado Dam Conservation Pool. When available, OCWD will continue to augment groundwater recharge through the purchase of imported water through MET. OCWD will diligently monitor and evaluate future water supply projects to sustainably manage and protect the OC Basin for future generations.

6.3.4.2 OCWD Engineer’s Report
The OCWD Engineer’s Report reports on the groundwater conditions and investigates information related to water supply and groundwater basin usage within OCWD’s service area.

The overall BPP achieved in the 2019 to 2020 water year within OCWD for non-irrigation use was 75.9%.

The achieved pumping was less than the BPP established for the 2019 to 2020 water year primarily due to the water quality impacts of PFAS. As indicated in Section 6.3.4, a BPP of 77% was established for water year 2021-22. Analysis of the groundwater basin’s projected accumulated overdraft, the available supplies to the OC Basin (assuming average hydrology) and the projected pumping demands indicate that this level of pumping can be sustained for 2021-22 without detriment to the OC Basin (OCWD, 2021).

City Council 27 – 75 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-20
In FY 2021-22 additional production of approximately 22,000 AF above the BPP will be undertaken by the City of Tustin, City of Garden Grove, City of Huntington Beach, Mesa Water District, and IRWD.

These agencies use the additional pumping allowance in order to accommodate groundwater quality improvement projects. As in prior years, production above the BPP from these projects would be partially or fully exempt from the BEA as a result of the benefit provided to the OC Basin by removing poor-quality groundwater and treating it for beneficial use (OCWD, 2021).

6.3.5 Recharge Management
Recharging water into the OC Basin through natural and artificial means is essential to support pumping from the OC Basin. Active recharge of groundwater began in 1949, in response to increasing drawdown of the OC Basin and, consequently, the threat of seawater intrusion. The OC Basin’s primary source of recharge is flow from the Santa Ana River, which is diverted into recharge basins and its main Orange County tributary, Santiago Creek. Other sources of recharge water include natural infiltration, recycled water, and imported water. Natural recharge consists of subsurface inflow from local hills and mountains, infiltration of precipitation and irrigation water, recharge in small flood control channels, and groundwater underflow to and from Los Angeles County and the ocean.

Recycled water for the OC Basin recharge is from two sources. The main source of recycled water is from the GWRS, which is injected into the Talbert Seawater Barrier and recharged in the Kraemer, Miller and Miraloma Basins (City of La Habra et al., 2017). The second source of recycled water is water purified at the Water Replenishment District’s Leo J. Vander Lans Treatment Facility, which supplies water to the Alamitos Seawater Barrier (owned and operated by the Los Angeles County Department of Public Works). OCWD’s share of the Alamitos Barrier injection total for water year 2018-19 was less than half of the total injection, based on barrier wells located within Orange County. The Water Replenishment District of Southern California (WRD) also works closely with OCWD to ensure that the water demands at the Alamitos Barrier are fulfilled through the use of recycled water as opposed to imported water, however the recycled portion was less than 33% for the last six years due to operational issues and wastewater supply interruptions (OCWD, 2020a). Injection of recycled water into these barriers is an effort by OCWD to control seawater intrusion into the OC Basin. Operation of the injection wells forms a hydraulic barrier to seawater intrusion.

OCWD purchases imported water for recharge from MWDOC. Untreated imported water can be used to recharge the OC Basin through the surface water recharge system in multiple locations, such as Anaheim Lake, Santa Ana River, Irvine Lake, and San Antonio Creek. Treated imported water can be used for in-lieu recharge, as was performed extensively from 1977 to 2007 (City of La Habra et al., 2017).

For detailed recharge management efforts from OCWD, refer to OCWD’s 2017 “Basin 8-1 Alternative Plan” (Appendix G).

6.3.6 MET Groundwater Replenishment Program
In the past, OCWD, MWDOC, and MET have coordinated water management to increase storage in the OC Basin when imported supplies are available for this purpose. MET’s groundwater replenishment program was discontinued on January 1, 2013, and currently MET via MWDOC sells replenishment water to OCWD at the full service untreated MET rate.

City Council 27 – 76 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-21
MWDOC’s imported water sales to OCWD since FY 1990-91 averages approximately 31,200 AF per year. Recently, due to low Santa Ana River flows as a result of low precipitation and increased use along the river, OCWD has needed to purchase more imported replenishment water per year than the average of 31,200 AFY over the last 25 years (this does not include water amounts from MET’s Conjunctive Use Program (CUP) or its Cyclic Storage Account). However, with the emergence of PFAS affecting groundwater production, the need to purchase imported water has been temporary suspended.

Until PFAS treatment is in place for most groundwater producers in the region, imported replenishment water will be significantly reduced.

6.3.7 MET Conjunctive Use Program / Cyclic Storage Program with OCWD Since 2004, OCWD, MWDOC, and certain groundwater producers have participated in MET’s CUP.

This program allows for the storage of MET water in the OC Basin. The existing MET program provides storage up to 66,000 AF of water in the OC Basin to be pumped by participating producers in place of receiving imported supplies during water shortage events in exchange for MET’s contribution to improvements in basin management facilities and an annual administrative fee. These improvements include eight new groundwater production wells, improvements to the seawater intrusion barrier, and construction of the Diemer Bypass Pipeline. The water is accounted for via the CUP program administered by the wholesale agencies and is controlled by MET such that it can be withdrawn over a three-year time period (OCWD, 2020). As of 2021, the CUP has not been in use since 2014. The CUP contract ends in 2028.

The Cyclic Storage account is an alternative storage account with MET. However, unlike the CUP program, OCWD controls when the water is used. The Cyclic Water Storage Program allows MET to store water in a local groundwater basin during surplus conditions, where MET has limited space in its regional storage locations. Once the water is stored via direct delivery or In-lieu the groundwater agency has the ability to purchase this water at a future date or over a 5-year period.

6.3.8 Overdraft Conditions
Annual groundwater basin overdraft, as defined in OCWD's Act, is the quantity by which production of groundwater supplies exceeds natural replenishment of groundwater supplies during a water year.

This difference between extraction and replenishment can be estimated by determining the change in volume of groundwater in storage that would have occurred had supplemental water not been used for any groundwater recharge purpose, including seawater intrusion protection, advanced water reclamation, and the in-Lieu Program.

The annual analysis of basin storage change and accumulated overdraft for water year 2019-20 has been completed. Based on the three-layer methodology, an accumulated overdraft of 200,000 AF was calculated for the water year ending June 30, 2020. The accumulated overdraft for the water year ending June 30, 2019 was 236,000 AF, which was also calculated using the three-layer storage method.

Therefore, an annual increase of 36,000 AF in stored groundwater was calculated as the difference between the June 2019 and June 2020 accumulated overdrafts (OCWD, 2021).

City Council 27 – 77 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-22

6.3.9 Planned Future Sources
The City plans to build two new future wells, build three new wells at existing sites, and rehabilitate two wells to ensure reliable local groundwater and continued drinking water safety. These well projects are further described in Section 6.9.

On a regional scale, OCWD regularly evaluates potential projects and conducts studies to improve the existing facilities and build new facilities to include in their Long-Term Facilities Plans (LTFP).

OCWD’s 2014 LTFP evaluated 65 potential projects for water supply, basin management, recharge facilities, operational improvements, and operational efficiency. Some of OCWD’s planned water projects that would increase supply are listed below. For a more detailed list of projects, refer to the 2014 LTFP (OCWD).
 GWRSFE – The Final Expansion of the GWRS is currently underway and is the third and final phase of the project. When the Final Expansion is completed in early 2023, the plant’s treatment capacity will increase from 100 to 130 MGD. To produce 130 MGD, additional treated wastewater from Orange County Sanitation District (OC San)’s Treatment Plant 2 is required. This recycled water represents a high quality, drought-proof source of water to protect and enhance the OC Basin. The Final Expansion project will include expanding the existing GWRS treatment facilities, constructing new conveyance facilities at OC San Plant 2, and rehabilitating an existing pipeline between OC San Plant 2 and the GWRS. Once completed, the GWRS plant will recycle 100% of OC San’s reclaimable sources and produce enough water to meet the needs of over one million people.  Forecast Informed Reservoir Operations (FIRO) at Prado Dam – Stormwater represents a significant source of water used by OCWD to recharge the OC Basin. Much of this recharge is made possible by the capture of Santa Ana River stormflows behind Prado Dam in the Conservation Pool.

FIRO represents the next generation of operating water reservoirs using the best available technology. Advances in weather and stormwater runoff forecasting hold promise to allow USACE to safety impound more stormwater while maintaining equivalent flood risk management capability behind Prado Dam. Preliminary modeling show that by expanding the Conservation Pool from elevation 505 to 512 ft msl, annual recharge to the groundwater basin could increase by as much as 4,500 to 7,000 AFY.

Surface Water

6.4.1 Existing Sources
There are, currently, no direct surface water uses in the City’s service area.

6.4.2 Planned Future Sources
As of 2021, there are no planned direct uses of surface water in the City’s service area.

City Council 27 – 78 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-23
Stormwater

6.5.1 Existing Sources
There are, currently, no direct stormwater uses in the City’s Service area.

6.5.2 Planned Future Sources
As of 2021, there are no planned stormwater uses in the City’s service area.

Wastewater and Recycled Water
The City is directly involved in wastewater services through its ownership and operation of the wastewater collection system in its service area. However, the City does not own or operate wastewater treatment facilities. The sewer system service area encompasses about 27.2 square miles and includes approximately 390 miles of sewer main. The wastewater system serves about 335,605 residents (Santa Ana’s Sewer Master Plan, 2016). For additional details on the City’s wastewater services, refer to the 2016 Santa Ana Sewer Master Plan.

Recycled water is wastewater that is treated through primary, secondary, and tertiary processes and is acceptable for most non-potable water purposes such as irrigation, and commercial and industrial process water per Title 22 requirements. Recycled water opportunities have continued to grow in Southern California as public acceptance and the need to expand local water resources continues to be a priority. Recycled water also provides a degree of flexibility and added reliability during drought conditions when imported water supplies are restricted. The City is indirectly involved in recycled water production, through its supply of wastewater for IPR. The following sections expand on the existing agency collaboration involved in these efforts as well as the City’s projected recycled water use over the next 25 years.

6.6.1 Agency Coordination
The City does not own or operate wastewater treatment facilities and sends all collected wastewater to Orange County Sanitation District (OC San) for treatment and disposal. OC San provides treated water to OCWD, the manager of the Orange County Groundwater Basin. OCWD strives to maintain and increase the reliability of the Orange County Groundwater Basin through replenishment with imported water, stormwater, and advanced treated wastewater. A full description of the Orange County Groundwater Basin is available in Section 6.3.2. OCWD and OC San have jointly constructed and expanded two water recycling projects to meet this goal including: 1) OCWD GAP, and 2) OCWD GWRS.

6.6.1.1 OCWD Green Acres Project
OCWD owns and operates the GAP, a water recycling system that provides up to 8,400 AFY of recycled water for irrigation and industrial uses. GAP provides an alternate source of water that is mainly delivered to parks, golf courses, greenbelts, cemeteries, and nurseries in the cities of Costa Mesa, Fountain Valley, Newport Beach, and Santa Ana. OCWD produces and distributes GAP water for purchase by the City, which sells and distributes the water to recycled water customers. Approximately 100 sites use City Council 27 – 79 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-24
GAP water, current recycled water users include Mile Square Park and Golf Courses in Fountain Valley, Costa Mesa Country Club, Chroma Systems carpet dyeing, Kaiser Permanente, and Caltrans. The City maintains an agreement with OCWD to supply GAP water to customers where available.

6.6.1.2 OCWD Groundwater Replenishment System
OCWD’s GWRS allows Southern California to decrease its dependency on imported water and creates a local and reliable source of water. OCWD’s GWRS purifies secondary treated wastewater from OC San to levels that meet and exceed all state and federal drinking water standards. The GWRS Phase 1 plant has been operational since January 2008 and uses a three-step advanced treatment process consisting of microfiltration (MF), reverse osmosis (RO), and ultraviolet (UV) light with hydrogen peroxide. A portion of the treated water is injected into the seawater barrier to prevent seawater intrusion into the groundwater basin. The other portion of the water is pumped to ponds where the water percolates into deep aquifers and becomes part of Orange County’s water supply. The treatment process described on OCWD’s website is provided below (OCWD, GWRS, 2020).

The GWRS first began operating in 2008 producing 70 million gallons of water per day (MGD) and in 2015, it underwent a 30 MGD expansion. Approximately 39,200 AFY of the highly purified water is pumped into the injection wells and 72,900 AFY is pumped to the percolation ponds in the City of Anaheim where the water is naturally filtered through sand and gravel to deep aquifers of the groundwater basin. The Orange County Groundwater Basin provides approximately 72% of the potable water supply for north and central Orange County. The design and construction of the first phase (78,500 AFY) of the GWRS project was jointly funded by OCWD and OC San; Phase 2 expansion (33,600 AFY) was funded solely by OCWD.

The Final Expansion of the GWRS is currently underway and is the third and final phase of the project.

When the Final Expansion is completed in 2023, the plant will produce 130 MGD. To produce 130 MGD, additional treated wastewater from OC San is required. This additional water will come from OC San’s Treatment Plant 2, which is in the City of Huntington Beach approximately 3.5 miles south of the GWRS.

The Final Expansion project will include expanding the existing GWRS treatment facilities, constructing new conveyance facilities at OC San Plant 2 and rehabilitating an existing pipeline between OC San Plant 2 and the GWRS. Once completed, the GWRS plant will recycle 100% of OC San’s reclaimable sources and produce enough water to meet the needs of over one million people.

6.6.2 Wastewater Description and Disposal
The City operates and maintains the local sewer system consisting of over 390 miles of pipeline, 7,630 manholes, and two lift stations that connect to OC San's trunk system to convey wastewater to OC San's treatment plants. OC San has an extensive system of gravity flow sewers, pump stations, and pressurized sewers. Collected wastewater is sent to OC San's plants located in the Cities of Huntington Beach and Fountain Valley. OC San’s Plant No. 1 in Fountain Valley has a capacity of 320 million gallons per day (MGD) and Plant No. 2 in Huntington Beach has a capacity of 312 MGD. Both plants share a common ocean outfall, but Plant No. 1 currently provides all its secondary treated wastewater to OCWD’s GWRS for beneficial reuse. The 120-inch diameter ocean outfall extends 4 miles off the coast of Huntington Beach. A 78-inch diameter emergency outfall also extends 1.3 miles off the coast. Table 6-6 summarizes the wastewater collected by the City and transported to OC San's system in 2020.

City Council 27 – 80 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-25
Table 6-6: Retail: Wastewater Collected Within Service Area in 2020 DWR Submittal Table 6-2 Retail: Wastewater Collected Within Service Area in 2020 There is no wastewater collection system. The supplier will not complete the table below.

Percentage of 2020 service area covered by wastewater collection system (optional) Percentage of 2020 service area population covered by wastewater collection system (optional) Wastewater Collection Recipient of Collected Wastewater Name of
Wastewater
Collection Agency
Wastewater
Volume Metered
or Estimated?
Volume of
Wastewater
Collected from
UWMP Service
Area 2020
Name of Wastewater
Treatment Agency
Receiving Collected
Wastewater
Treatment
Plant Name
Is WWTP
Located Within
UWMP Area?
Is WWTP Operation
Contracted to a Third
Party? (optional)
Add additional rows as needed
City of Santa Ana Estimated 21,768 OC San Plant No. 1 / Plant No. 2 No No
Total Wastewater Collected from
Service Area in 2020: 21,768
NOTES:

Assumed a return rate of 65% (City of Santa Ana, 2015)
City Council 27 – 81 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-26

6.6.3 Current Recycled Water Uses
The City provides OCWD GAP recycled water to the southern part of the City. In FY 2019-20, approximately 249 AF of GAP water was used in the City’s service area. The current users/uses of recycled water are as follows:
 Centennial Park and Soccer Fields
 Bomo Koral Park
 Flower Street Bike Trail
 McFadden Intermediate School
 Adams Park
 Chroma Systems- Carpet Dyeing
 Chroma Systems- Landscape
 Kaiser Medical Office Landscape
 Chick-fil-A Landscape
 Santa Ana River Trail Landscape
 Godinez High School Landscape
 MacArthur Boulevard Median Landscape
 Bear Street Median Landscape
 Thornton Park
 Harbor Boulevard Median Landscape
 Santa Ana Valley High School Sports Complex Landscape Griset Park
South Coast Park Plaza
For indirect use, the City also benefits from OCWD’s GWRS system that provides IPR through replenishment of Orange County Groundwater Basin with water that meets state and federal drinking water standards.

6.6.4 Projected Recycled Water Uses
The City will continue to receive recycled water from GAP and supply it to the various landscape irrigation sites mentioned in Section 9. The City will continue to supply wastewater to support the region’s IPR via GWRS. Current and projected recycled water use through 2045 are shown in Table 6-7 and are expected to remain constant. Although the 2015 UWMP acknowledged IPR of wastewater, it did not quantify projections. These projections will be prepared moving forward. The projected 2020 recycled water use from the City's 2015 UWMP are compared to the 2020 actual use in Table 6-8, where the actual use is slightly less than the projected.

City Council 27 – 82 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-27
Table 6-7: Retail: Recycled Water Direct Beneficial Uses Within Service Area DWR Submittal Table 6-4 Retail: Recycled Water Direct Beneficial Uses Within Service Area Recycled water is not used and is not planned for use within the service area of the supplier.

The supplier will not complete the table below.

Name of Supplier Producing (Treating) the Recycled Water:

Name of Supplier Operating the Recycled Water Distribution System:

Supplemental Water Added in 2020 (volume) Include units Source of 2020 Supplemental Water
Beneficial Use Type Potential Beneficial Uses of
Recycled Water (Describe)
Amount of Potential Uses of
Recycled Water (Quantity)
General Description of 2020
Uses
Level of
Treatment 2020 2025 2030 2035 2040 2045 (opt)
Landscape irrigation (excludes golf courses) 249 AF
Parks, street medians,
institutional and commercial
landscapes
Tertiary 249 249 249 249 249 249
Total: 249 249 249 249 249 249
*IPR - Indirect Potable Reuse
NOTES:

Table does not include groundwater recharge (IPR) numbers as they are not separate from OCWD's supply City Council 27 – 83 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-28
Table 6-8: Retail: 2015 UWMP Recycled Water Use Projection Compared to 2020 Actual DWR Submittal Table 6-5 Retail: 2015 UWMP Recycled Water Use Projection Compared to 2020 Actual Recycled water was not used in 2015 nor projected for use in 2020.

The Supplier will not complete the table below.

Use Type 2015 Projection for 2020 2020 Actual Use
Landscape irrigation (excludes golf courses) 320 249
Groundwater recharge (IPR) N/A 8,528
Total 320 8,777
NOTES:

Groundwater recharge (IPR) estimated based on OCWD Groundwater Basin Production x Percent of Total Basin Production for 2020 (33.3%)

6.6.5 Potential Recycled Water Uses
Potential recycled water users are locations where recycled water could replace potable water use.

Since OCWD is limited in GAP plant capacity, additional users do not exist at the time and the City does not expect additional GAP use in the future. However, the City will continue to convey its wastewater to OC San's regional treatment facilities where the wastewater is treated and recycled for IPR.

6.6.6 Optimization Plan
Studies of water recycling opportunities within Southern California provide a context for promoting the development of water recycling plans. It is recognized that broad public acceptance of recycled water requires continued education and public involvement. Currently, most of the recycled water available is being directed toward replenishment of the groundwater basin and improvements in groundwater quality.

As a user of groundwater, the City supports the efforts of OCWD and OC San to use recycled water as a primary resource for groundwater recharge in Orange County.

Financial Incentives
The implementation of recycled water projects involves a substantial upfront capital investment for planning studies, Environmental Impact Reports (EIR), engineering design and construction before there is any recycled water to market. In some cases, these capital costs exceed the short-term expense of purchasing additional imported water supplies from MET.

The establishment of new supplemental funding sources through federal, state, and regional programs now provides significant financial incentives for water agencies to develop and make use of recycled water locally. Potential sources of funding include federal, state, and local funding opportunities.

These funding sources include the U.S. Department of Interior Bureau of Reclamation (USBR), California City Council 27 – 84 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-29
Proposition 13 Water Bond, Proposition 84 and MET LRP. These funding opportunities may be sought by the City or possibly more appropriately by regional agencies. The City will continue to support seeking funding for regional water recycling projects and programs.

Optimizing Recycled Water Use
In Orange County, recycled water is used for irrigating golf courses, parks, schools, businesses, and communal landscaping, as well as for groundwater recharge. Recycled water users in the City receive their water from OCWD’s GAP. Analyses have indicated that present worth costs to expand recycled water within other areas of the City are not cost effective as compared to purchasing imported water from MET or using groundwater. The City will continue to conduct feasibility studies for recycled water and seek out creative solutions such as funding, regulatory requirements, institutional arrangement, and public acceptance for recycled water use with OCWD, MET, and other cooperative agencies.

Desalination Opportunities
In 2001, MET developed a Seawater Desalination Program (SDP) to provide incentives for developing new seawater desalination projects in MET’s service area. In 2014, MET modified the provisions of their LRP to include incentives for locally produced seawater desalination projects that reduce the need for imported supplies. To qualify for the incentive, proposed projects must replace an existing demand or prevent new demand on MET’s imported water supplies. In return, MET offers three incentive formulas under the program:
 Sliding scale incentive up to $340 per AF for a 25-year agreement term, depending on the unit cost of seawater produced compared to the cost of MET supplies.  Sliding scale incentive up to $475 per AF for a 15-year agreement term, depending on the unit cost of seawater produced compared to the cost of MET supplies.  Fixed incentive up to $305 per AF for a 25-year agreement term.

Developing local supplies within MET's service area is part of their IRP goal of improving water supply reliability in the region. Creating new local supplies reduce pressure on imported supplies from the SWP and Colorado River.

On May 6th, 2015, the SWRCB approved an amendment to the state’s Water Quality Control Plan for the Ocean Waters of California (California Ocean Plan) to address effects associated with the construction and operation of seawater desalination facilities (Desalination Amendment). The amendment supports the use of ocean water as a reliable supplement to traditional water supplies while protecting marine life and water quality. The California Ocean Plan now formally acknowledges seawater desalination as a beneficial use of the Pacific Ocean and the Desalination Amendment provides a uniform, consistent process for permitting seawater desalination facilities statewide.

If the following projects are developed, MET's imported water deliveries to Orange County could be reduced. These projects include the Huntington Beach Seawater Desalination Project and the Doheny Desalination Project.

As for City-led initiatives, the City has not investigated seawater desalination as a result of economic and physical impediments.

City Council 27 – 85 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-30
Brackish groundwater is groundwater with a salinity higher than freshwater, but lower than seawater.

Brackish groundwater typically requires treatment using desalters.

6.7.1 Ocean Water Desalination
Huntington Beach Seawater Desalination Project – Poseidon Resources LLC (Poseidon), a private company, is developing the Huntington Beach Seawater Desalination Project to be co-located at the AES Power Plant in the City of Huntington Beach along Pacific Coast Highway and Newland Street.

The proposed project would produce up to 50 MGD (56,000 AFY) of drinking water to provide approximately 10% of Orange County’s water supply needs.

Over the past several years, Poseidon has been working with OCWD on the general terms and conditions for selling the water to OCWD. OCWD and MWDOC have proposed a few distribution options to agencies in Orange County. The northern option proposes the water be distributed to the northern agencies closer to the plant within OCWD’s service area with the possibility of recharging/injecting a portion of the product water into the OC Basin. The southern option builds on the northern option by delivering a portion of the product water through the existing OC-44 pipeline for conveyance to the south Orange County water agencies. A third option is also being explored, which includes all of the product water to be recharged into the OC Basin. Currently, a combination of these options could be pursued.

The Huntington Beach Seawater Desalination project plant capacity of 56,000 AFY would be the single largest source of new, local drinking water available to the region. In addition to offsetting imported demand, water from this project could provide OCWD with management flexibility in the OC Basin by augmenting supplies into the Talbert Seawater Barrier to prevent seawater intrusion.

In May 2015, OCWD and Poseidon entered into a non-binding Term Sheet that provided the overall partner structure in order to advance the project. Based on the initial Term Sheet, which was updated in 2018, Poseidon would be responsible for permitting, financing, design, construction, and operations of the treatment plant while OCWD would purchase the production volume, assuming the product water quality and quantity meet specific contract parameters and criteria. Furthermore, OCWD would then distribute the water in Orange County using one of the proposed distribution options described above.

Currently, the project is in the regulatory permit approval process with the Regional Water Quality Control Board and the California Coastal Commission. Once all of the required permits are approved, Poseidon will then work with OCWD and interested member agencies in developing a plan to distribute the water.

Subsequent to the regulatory permit approval process, and agreement with interested parties, Poseidon estimates that the project could be online as early as 2027.

Under guidance provided by DWR, the Huntington Beach Seawater Desalination Plant’s projected water supplies are not included in the supply projections due to its current status within the criteria established by State guidelines (DWR, 2020c).

Doheny Desalination Project – South Coast Water District (SCWD) is proposing to develop an ocean water desalination facility in Dana Point. SCWD intends to construct a facility with an initial capacity of up to 5 million gallons per day (MGD). The initial up to 5 MGD capacity would be available for SCWD and potential partnering water agencies to provide a high quality, locally-controlled, drought-proof water supply. The desalination facility would also provide emergency backup water supplies, should an earthquake, system shutdown, or other event disrupt the delivery of imported water to the area. The City Council 27 – 86 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-31
Project would consist of a subsurface slant well intake system (constructed within Doheny Beach State Park), raw (sea) water conveyance to the desalination facility site (located on SCWD owned property), a seawater reverse osmosis (SWRO) desalination facility, brine disposal through an existing wastewater ocean outfall, solids handling facilities, storage, and potable water conveyance interties to adjacent local and regional distribution infrastructure.

The Doheny Ocean Desalination Project has been determined as the best water supply option to meet reliability needs of SCWD and south Orange County. SCWD is pursuing the Project to ensure it meets the water use needs of its customers and the region by providing a drought-proof potable water supply, which diversifies SCWD’s supply portfolio and protects against long-term imported water emergency outages and supply shortfalls that could have significant impact to our coastal communities, public health, and local economy. Phase I of the Project (aka, the “Local” Project) will provide SCWD and the region with up to 5 MGD of critical potable water supply that, together with recycled water, groundwater, and conservation, will provide the majority of SCWD’s water supply through local reliable sources. An up to 15 MGD capacity project has been identified as a potential future “regional” project that could be phased incrementally, depending on regional needs.

On June 27, 2019, SCWD certified the final EIR and approved the Project. The Final EIR included considerable additional information provided at the request of the Coastal Commission and the Regional Board, including an updated coastal hazard analysis, updated brine discharge modeling, and updated groundwater modeling, updated hydrology analysis. The approval of the Project also included a commitment to 100 percent carbon neutrality through a 100 percent offset of emissions through the expansion of Project mitigation and use of renewable energy sources. SCWD is currently in the permitting process and finalizing additional due diligence studies. If implemented, SCWD anticipates an online date of 2025.

Under guidance provided by DWR, the Doheny Seawater Desalination Project’s projected water supplies are not included in the supply projections due to its current status within the criteria established by State guidelines (DWR, 2020c).

6.7.2 Groundwater Desalination
There are currently no brackish groundwater opportunities within the City’s service area.

Water Exchanges and Transfers
Interconnections with other agencies result in the ability to share water supplies during short term emergency situations or planned shutdowns of major imported water systems. However, beyond short term outages, transfers can also be involved with longer term water exchanges to deal with droughts or water allocation situations. The following subsections describe the City’s existing and planned exchanges and transfers.

6.8.1 Existing Exchanges and Transfers
Interconnections with other agencies result in the ability to share water supplies during short term emergency situations or planned shutdowns of major imported systems. The City maintains seven connections to MET's system and nine emergency connections with surrounding agencies, including the City Council 27 – 87 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-32
Cities of Costa Mesa, Fountain Valley, Garden Grove, Orange, Tustin, and Southern California Water Company. These connections can provide a total supply of 60,580 gpm into the City's distribution system.

The MET connections are typically operating as constant flow sources.

6.8.2 Planned and Potential Exchanges and Transfers
The City does not currently have plans to introduce new exchanges and transfers. However, MET continues to help its retail agencies develop transfer and exchange opportunities that promote reliability within their systems. Therefore, MET will look to help its retail agencies navigate the operational and administrative issues of transfers within the MET distribution system.

In an indirect regional scale, the Santa Ana River Conservation and Conjunctive Use Project (SARCCUP) is a joint project established by five regional water agencies within the Santa Ana River Watershed (Eastern Municipal Water District, Inland Empire Utilities Agency, Western Municipal Water District, OCWD, and San Bernardino Valley Municipal Water District).

In 2016, SARCCUP was successful in receiving $55 million in grant funds from Proposition 84 through DWR. The overall SARCCUP program awarded by Proposition 84, consists of three main program elements:
 Watershed-Scale Cooperative Water Banking Program
 Water Use Efficiency: Landscape Design and Irrigation Improvements and Water Budget Assistance for Agencies
 Habitat Creation and Arundo Donax Removal from the Santa Ana River The Watershed-Scale Cooperative Water Banking Program is the largest component of SARCCUP and since 2016, Valley, MET, and the four SARCCUP-MWD Member Agencies, with MWDOC representing OCWD, have been discussing terms and conditions for the ability to purchase surplus water from Valley to be stored in the Santa Ana River watershed. With the Valley and MET surplus water purchase agreement due for renewal, it was the desire of Valley to establish a new agreement with MET that allows a portion of its surplus water to be stored within the Santa Ana River watershed.

An agreement between MET and four SARCCUP-MWD Member Agencies was approved earlier this year that gives the SARCCUP agencies the ability to purchase a portion (up to 50%) of the surplus water that San Bernardino Valley Municipal Water District (Valley), a SWP Contractor, sells to MET. Such water will be stored in local groundwater basins throughout the Santa Ana River watershed and extract during dry years to reduce the impacts from multiyear droughts. In Orange County, 36,000 AF can be stored in the OC Basin for use during dry years. More importantly, this stored SARCCUP water can be categorized as “extraordinary supplies”, if used during a MET allocation, and can enhance a participating agencies’ reliability during a drought. Moreover, if excess water is available MWDOC can purchase additional water for its service area.

Further details remain to be developed between OCWD, retail agencies, and MWDOC in how the water will be distributed in Orange County and who participates.

City Council 27 – 88 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-33
Summary of Future Water Projects
The City continually reviews practices that will provide its customers with adequate and reliable supplies.

Trained staff continue to ensure the water quality is safe and the water supply will meet present and future needs in an environmentally and economically responsible manner.

Although the City has various projects planned to maintain and improve the water system (Section 6.9.1), there are currently no City-specific planned projects that have both a concrete timeline and a quantifiable increase in supply.

6.9.1 City Initiatives
The City anticipates water demand in the City to remain relatively constant over the next 25 years.

Any new water sources developed will primarily be to better manage the groundwater basin and replace or upgrade inefficient wells, rather than support population growth and new development. The projects that have been identified by the City to improve the City’s water supply reliability and enhance the operations of the City include major well rehabilitation and refurbishment, well casing rehabilitation, minor motor control center refurbishment, pump station rehabilitation, water main replacements, MET connection upgrades, emergency power projects, and miscellaneous improvements such as SCADA improvements. A Capital Improvement Program identified water projects to implement between FY 2017-18 through FY 2039-40. Those related to increasing the water supply are listed below – for a more detailed list of projects, refer to the City’s 2017 Water Master Plan (TetraTech, 2017).

New Well Construction – The City has identified projects to build New Wells No. 1 and 2, as well as drill new wells for Wells No. 16, 22, and 24. These new wells will provide the City with further redundancy and allow the City to continue achieving pumping capacity for higher BPP rates.

Major Well Rehabilitation – The City has identified projects for major well rehabilitation for Wells 29 and 32.

6.9.2 Regional Initiatives
Beyond City-specific projects, the City consistently coordinates its long-term water shortage planning with MET and OCWD. MWDOC has identified the following future regional projects, some of which can indirectly benefit the City to further increase local supplies and offset imported supplies (CDM Smith, 2019):

Poseidon Huntington Beach Ocean Desalination Project – Poseidon proposes to construct and operate the Huntington Beach Ocean Desalination Plant on a 12-acre parcel adjacent to the AES Huntington Beach Generating Station. The facility would have a capacity of 50 MGD and 56,000 AFY, with its main components consisting of a water intake system, a desalination facility, a concentrate disposal system, and a product water storage tank. This project would provide both system and supply reliability benefits to the SOC, the OC Basin, and Huntington Beach. The capital cost in the initial year for the plant is $1.22 billion.

Doheny Ocean Desalination Project – SCWD is proposing to construct an ocean water desalination facility in Dana Point at Doheny State Beach. The facility would have an initial up to 5 MGD capacity, with the potential for future expansions up to 15 MGD. The project’s main components are a subsurface water City Council 27 – 89 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-34
intake system, a raw ocean water conveyance pipeline, a desalination facility, a seawater reverse osmosis (SWRO) desalination facility, a brine disposal system, and a product water storage tank.

San Juan Watershed Project – Santa Margarita Water District (SMWD) and other project partners have proposed a multi-phased project within the San Juan Creek Watershed to capture local stormwater and develop, convey, and recharge recycled water into the San Juan Groundwater Basin and treat the water upon pumping it out of the basin. The first phase includes the installation of three rubber dams within San Juan Creek to promote in-stream recharge of the basin, with an anticipated production of 700 AFY on average. The second phase would develop additional surface water and groundwater management practices by using stormwater and introducing recycled water for infiltration into the basin and has an anticipated production of 2,660 to 4,920 AFY. The third phase will introduce recycled water directly into San Juan Creek through live stream recharge, with an anticipated production of up to 2,660 AFY (SMWD, 2021).

Cadiz Water Bank – SMWD and Cadiz, Inc. are developing this project to create a new water supply by conserving groundwater that is currently being lost to evaporation and recovering the conserved water by pumping it out of the Fenner Valley Groundwater Basin to convey to MET’s CRA. The project consists of a groundwater pumping component that includes an average of 50 TAFY of groundwater that can be pumped from the basin over a 50-year period, and a water storage component that allows participants to send surplus water supplies to be recharged in spreading basins and held in storage.

South Orange County Emergency Interconnection Expansion – MWDOC has been working with the South Orange County (SOC) agencies on improvements for system reliability primarily due to the risk of earthquakes causing outages of the MET imported water system as well as extended grid outages.

Existing regional interconnection agreements between IRWD and SOC agencies provides for the delivery of water through the IRWWD system to participating SOC agencies in times of emergency. MWDOC and IRWD are currently studying an expansion of the program, including the potential East Orange County Feeder No. 2 pipeline and an expanded and scalable emergency groundwater program, with a capital cost of $867,451.

SARCCUP – SARCCUP is a joint project established between MET, MWDOC, Eastern MWD, Western MWD, Inland Empire Utilities Agency, and OCWD that can provide significant benefits in the form of additional supplies during dry years for Orange County. Surplus SWP water from San Bernardino Valley Water District (SBVMWD) can be purchased and stored for use during dry years. This water can even be considered an extraordinary supply under MET allocation Plan, if qualified under MET’s extraordinary supply guidelines. OCWD has the ability to store 36,000 AF of SARCCUP water and if excess water is available MWDOC has the ability to purchase additional water. Further details remain to be developed between OCWD, retail agencies, and MWDOC in how the water will be distributed in Orange County and who participates.

Moulton Niquel Water District (MNWD) / OCWD Pilot Storage Program - OCWD entered into an agreement with MNWD to develop a pilot program to explore the opportunity to store water in the OC Basin. The purpose of such a storage account would provide MNWD water during emergencies and/or provide additional water during dry periods. As part of the agreement, OCWD hired consultants to evaluate where and how to extract groundwater from the OC Basin with several options to pump the water to MNWD via the East Orange County Feeder No. 2; as well as a review of existing City Council 27 – 90 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-35
banking/exchange programs in California to determine what compensation methodologies could OCWD assess for a storage/banking program.

Energy Intensity
A new requirement for this 2020 UWMP is an energy intensity analysis of the Supplier’s water, wastewater, and recycled water systems, where applicable for a 12-month period. The City owns and operates a water distribution system and a wastewater collection system. This section reports the energy intensity for each system using data from CY2019.

Water and energy resources are inextricably connected. Known as the "water-energy nexus", the California Energy Commission estimates the transport and treatment of water, treatment and disposal of wastewater, and the energy used to heat and consume water account for nearly 20% of the total electricity and 30% of non-power plant related natural gas consumed in California. In 2015, California issued new rules requiring 50% of its power to come from renewables, along with a reduction in greenhouse gas (GHG) emissions to 40% below 1990 levels by 2030. Consistent with energy and water conservation, renewable energy production, and GHG mitigation initiatives, the City reports the energy intensity of its water and wastewater operations.

The methodology for calculating water energy intensity outlined in Appendix O of the UWMP Guidebook was adapted from the California Institute for Energy Efficiency exploratory research study titled “Methodology for Analysis of the Energy Intensity of California’s Water Systems” (Wilkinson 2000).

The study defines water energy intensity as the total amount of energy, calculated on a whole‐system basis, required for the use of a given amount of water in a specific location.

UWMP reporting is limited to available energy intensity information associated with water processes occurring within an urban water supplier’s direct operational control. Operational control is defined as authority over normal business operations at the operational level. Any energy embedded in water supplies imparted by an upstream water supplier (e.g., water wholesaler) or consequently by a downstream water purveyor (e.g., retail water provider) is not included in the UWMP energy intensity tables. The City’s calculations conform to methodologies outlined in the UWMP Guidebook and Wilkinson study.

6.10.1 Water Supply Energy Intensity
In CY 2019, the City consumed 496.9 kWh per AF for water extraction and distribution services (Table 6-9). The basis for calculations is provided in more detail in the following subsections.

City Council 27 – 91 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-36
Table 6-9: Recommended Energy Intensity – Multiple Water Delivery Products Urban Water Supplier: City of Santa Ana
Water Delivery Product (If delivering more than one type of product use Table O-1C) dropdown menu
Table O-1A: Recommended Energy Reporting - Water Supply Process Approach Enter Start Date for
Reporting Period 1/1/2019
Urban Water Supplier Operational Control
End Date 12/31/2019
Water Management Process
Non-Consequential
Hydropower
(if applicable)
Is upstream embedded in the values reported?
Water
Volume
Units
Used
Extract
and
Divert
Place
into
Storage
Conveyance Treatment Distribution Total
Utility
Hydrop
ower
Net Utility
Volume of Water Entering Process 25504.78 0 0 0 31784.5 31784.5 0 31784.5 Energy Consumed (kWh) N/A 7142733 0 0 0 8650011 15792744 15792744 Energy Intensity (kWh/vol.) N/A 280.1 0.0 0.0 0.0 272.1 496.9 0.0 496.9 City Council 27 – 92 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-37
Quantity of Self-Generated
Renewable Energy
0 kWh
Data Quality (Estimate, Metered Data, Combination of
Estimates and Metered Data)
Combination of
Estimates and Metered
Data
Data Quality Narrative:

Volume of Water Entering Process: Extraction data based on MWDOC Compiled Water Audits “Volume From Own Sources” and Distribution data based on MWDOC Compiled Water Audits “Authorized Consumption.” Non-Revenue Water is not considered in this calculation – the energy efficiency is based on water delivered to customers.

Energy consumption from Southern California Edison electric bills.

Narrative:

The City of Santa Ana relies on imported water and local groundwater to meet their customers' water needs. Operational control is limited to groundwater wells and potable water booster stations. This table does not include upstream embedded energy consumed prior to Santa Ana taking control.

City Council 27 – 93 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-38

6.10.1.1 Operational Control and Reporting Period
As described throughout the report, the City is a retail agency that relies on groundwater and imported water.

Water supply energy intensity was calculated for the CY 2019. This is a standard for energy and GHG reporting to the Climate Registry, California Air Resources Board and the United States Environmental Protection Agency. Calendar year reporting provides consistency when assessing direct and indirect energy consumption within a larger geographical context, as fiscal year starting dates can vary between utilities and organizations.

6.10.1.2 Volume of Water Entering Processes
According to the City water audits, the City extracted 25,504 AF of groundwater from the OC Basin and distributed 31,785 AF of both groundwater and imported water. Water volume is based on metered data.

6.10.1.3 Energy Consumption and Generation
According to Southern California Edison Electricity Bills, groundwater wells consumed 7,142,733 kilowatt hours (kWh) of electricity and booster pumps and MET Connections along the distribution system consumed 8,650,011 kWh of electricity. Currently, the City does not generate renewable energy. In the process of writing this report, the City discovered that the consumption amounts on SCE meters did not match the consumption amounts listed in SCE bills. The City is in the process of establishing why the meters and bills do not match but for this report, the Energy Consumption listed in the tables reflects the consumption noted in SCE bills that the City receives.

6.10.2 Wastewater and Recycled Water Energy Intensity
In CY 2019, the City consumed 2.8 KWh per AF for wastewater services (Table 6-10). The basis for calculations is provided in more detail in the following subsections.

City Council 27 – 94 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-39
Table 6-10: Recommended Energy Intensity – Wastewater & Recycled Water Urban Water Supplier: City of Santa Ana
Table O-2: Recommended Energy Reporting - Wastewater & Recycled Water Enter Start Date for Reporting Period 1/1/2019
Urban Water Supplier Operational Control
End Date 12/31/2019
Water Management Process
Is upstream embedded in the values reported? Collection / Conveyance Treatment Discharge / Distribution Total
Volume of Water Units Used
Volume of Wastewater Entering Process (volume units selected above) 21768 0 0 0 Wastewater Energy Consumed (kWh) 60245 0 0 60245
Wastewater Energy Intensity (kWh/volume) 2.8 0.0 0.0 0.0 Volume of Recycled Water Entering Process (volume units selected above) 0 0 0 0 Recycled Water Energy Consumed (kWh) 0 0 0 0
Recycled Water Energy Intensity (kWh/volume) 0.0 0.0 0.0 0.0 Quantity of Self-Generated Renewable Energy
related to recycled water and wastewater
operations
kWh
City Council 27 – 95 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-40
Data Quality (Estimate, Metered Data,
Combination of Estimates and Metered Data)
Combination of Estimates and Metered Data
Data Quality Narrative:

Wastewater volume is an estimate based on water consumption in the service area. Energy is based on billed consumption.

Narrative:

Santa Ana operates the local wastewater collection system but does not operate treatment facilities. Operational control is limited to a wastewater lift station in the local collection system. This table does not include downstream energy consumed to treat the wastewater, after Santa Ana's control.

City Council 27 – 96 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-41

6.10.2.1 Operational Control and Reporting Period
The City’s existing sewer system is made up of a network of gravity sewers. As explained in Section 6.6, the City owns and operates two wastewater lift stations but no treatment facilities. Similar to the water supply energy intensity, wastewater energy intensity was calculated for the 2019 calendar year. This is a standard for energy and GHG reporting.

6.10.2.2 Volume of Wastewater Entering Processes
In CY 2019, the City collected and conveyed 21,768 AF of wastewater to OC San. The City provides water for indirect potable reuse but the City does not have operational control over any part of the recycled water system.

6.10.2.3 Energy Consumption and Generation
According to estimates referencing Southern California Edison Electricity Bills, the City’s two wastewater lift stations consumed 60,245 kWh of electricity. There are no other wastewater facilities that are owned and operated by the City. Currently, the City does not generate renewable energy. Energy consumption data was estimated, based on pump hours.

6.10.3 Key Findings and Next Steps
Calculating and disclosing direct operationally-controlled energy intensities is another step towards understanding the water-energy nexus. However, much work is still needed to better understand upstream and downstream (indirect) water-energy impacts. When assessing water supply energy intensities or comparing intensities between providers, it is important to consider reporting boundaries as they do not convey the upstream embedded energy or impacts energy intensity has on downstream users. Engaging one’s upstream and downstream supply chain can guide more informed decisions that holistically benefit the environment and are mutually beneficial to engaged parties. Suggestions for further study include:
 Supply-chain engagement – The City relies on a variety of water sources for their customers.

While some studies have used life cycle assessment tools to estimate energy intensities, there is a need to confirm this data. The 2020 UWMP requirement for all agencies to calculate energy intensity will help the City and neighboring agencies make more informed decisions that would benefit the region as a whole regarding the energy and water nexus. A similar analysis could be performed with upstream supply chain energy, for example, with State Project Water.  Internal benchmarking and goal setting – With a focus on energy conservation and a projected increase in water demand despite energy conservation efforts, the City’s energy intensities will likely decrease with time. Conceivably, in a case where water demand decreases, energy intensities may rise as the energy required to pump or treat is not always proportional to water delivered. In the course of exploring the water-energy nexus and pursuing renewable energy goals, there is a need to assess whether energy intensity is a meaningful indicator or if it makes City Council 27 – 97 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
6-42
sense to use a different indicator to reflect the City’s commitment to energy and water conservation.
 Regional sustainability – Water and energy efficiency are two components of a sustainable future.

Efforts to conserve water and energy, however, may impact the social, environmental, and economic livelihood of the region. In addition to the relationship between water and energy, over time, it may also be important to consider and assess the connection these resources have on other aspects of a sustainable future.

City Council 27 – 98 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-1
7 WATER SERVICE RELIABILITY AND DROUGHT RISK

ASSESSMENT
Building upon the water supply identified and projected in Section 6, this key section of the UWMP examines the City’s water supplies, water uses, and the resulting water supply reliability. Water service reliability reflects the City’s ability to meet the water needs of its customers under varying conditions. For the UWMP, water supply reliability is evaluated in two assessments: 1) the Water Service Reliability Assessment and 2) the DRA. The Water Service reliability assessment compares projected supply to projected demand in 2025 through 2045 for three hydrological conditions: a normal year, a single dry year, and a drought period lasting five consecutive years. The DRA, a new UWMP requirement, assesses near-term water supply reliability. It compares projected water supply and demand assuming the City’ experiences a drought period for the next five consecutive years. Factors affecting reliability, such as climate change and regulatory impacts, are accounted for.

Water Service Reliability Overview
Every urban water supplier is required to assess the reliability of their water service to their customers under normal, single-dry, and multiple dry water years. The City depends on a combination of imported and local supplies to meet its water demands and has taken numerous steps to ensure it has adequate supplies. Development of local supplies augments the reliability of the water system. There are various factors that may impact reliability of supplies such as legal, environmental, water quality and climatic which are discussed below. MET’s 2020 UWMP concludes that they can meet full-service demands of their member agencies starting 2025 through 2045 during normal years, single-dry year, and multiple-dry years. Consequently, the City is projected to meet full-service demands through 2045 for the same scenarios, due to diversified supply and conservation measures.

MET’s 2020 IRP update describes the core water resources that will be used to meet full-service demands at the retail level under all foreseeable hydrologic conditions from 2025 through 2045.

The foundation of MET’s resource strategy for achieving regional water supply reliability has been to develop and implement water resources programs and activities through its IRP preferred resource mix.

This preferred resource mix includes conservation, local resources such as water recycling and groundwater recovery, Colorado River supplies and transfers, SWP supplies and transfers, in-region surface reservoir storage, in-region groundwater storage, out-of-region banking, treatment, conveyance, and infrastructure improvements.

Table 7-1 shows the basis of water year data used to predict drought supply availability. Per the Demand Forecast TM, the average (normal) hydrologic condition for the Orange County region is represented by FY 2017-18 and FY 2018-19 and the single-dry year hydrologic condition by FY 2013-14. The five consecutive years of FY 2011-12 to FY 2015-16 represent the driest five consecutive year historic sequence for the region. Locally, Orange County rainfall for the five-year period totaled 36 inches, the driest on record.

City Council 27 – 99 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-2
Table 7-1 Retail: Basis of Water Year Data (Reliability Assessment) DWR Submittal Table 7-1 Retail: Basis of Water Year Data (Reliability Assessment) Year Type Base Year
Available Supplies if
Year Type Repeats
Quantification of available supplies is not
compatible with this table and is provided
elsewhere in the UWMP.

Location __________________________
Quantification of available supplies is
provided in this table as either volume only,
percent only, or both.

Volume
Available % of Average Supply
Average Year 2018-2019 - 100%
Single-Dry Year 2014 - 106%
Consecutive Dry Years 1st Year 2012 - 106%
Consecutive Dry Years 2nd Year 2013 - 106%
Consecutive Dry Years 3rd Year 2014 - 106%
Consecutive Dry Years 4th Year 2015 - 106%
Consecutive Dry Years 5th Year 2016 - 106%
NOTES:

Assumes an increase of 6% above average year demands in dry and multiple dry years based on the Demand Forecast TM (CDM Smith, 2021). 106% represents the percent of average supply needed to meet demands of a single-dry and multiple-dry years. Since the City is able to meet all of its demand with imported water from MET (on top of local groundwater and recycled water) the percent of average supply value reported is equivalent to the percent of average demand under the corresponding hydrologic condition.

City Council 27 – 100 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-3
The following sections provide a detailed discussion of the City’s water source reliability. Additionally, the following sections compare the City’s projected supply and demand under various hydrological conditions, to determine the City’s supply reliability for the 25-year planning horizon.

Factors Affecting Reliability
In order to prepare realistic water supply reliability assessments, various factors affecting reliability were accounted for. These include climate change and environmental requirements, regulatory changes, water quality impacts, and locally applicable criteria.

7.2.1 Climate Change and the Environment
Changing climate patterns are expected to shift precipitation patterns and affect water supply availability.

Unpredictable weather patterns will make water supply planning more challenging. Although climate change impacts are associated with exact timing, magnitude, and regional impacts of these temperature and precipitation changes, researchers have identified several areas of concern for California water planners (MET, 2021). These areas include:
 A reduction in Sierra Nevada Mountain snowpack.
 Increased intensity and frequency of extreme weather events.  Prolonged drought periods.
 Water quality issues associated with increase in wildfires.  Changes in runoff pattern and amount.
 Rising sea levels resulting in:
o Impacts to coastal groundwater basins due to seawater intrusion. o Increased risk of damage from storms, high-tide events, and the erosion of levees. o Potential pumping cutbacks to the SWP and CVP.

Other important issues of concern due to global climate change include:
 Effects on local supplies such as groundwater.
 Changes in urban and agricultural demand levels and patterns.  Increased evapotranspiration from higher temperatures.  Impacts to human health from water-borne pathogens and water quality degradation.  Declines in ecosystem health and function.
 Alterations to power generation and pumping regime.
 Increases in ocean algal blooms affected seawater desalination supplies.

The major impact in California is that without additional surface storage, the earlier and heavier runoff (rather than snowpack retaining water in storage in the mountains), will result in more water being lost to the oceans. A heavy emphasis on storage is needed in California.

In addition, the Colorado River Basin supplies have been inconsistent since about the year 2000, with precipitation near normal while runoff has been less than average in two out of every three years.

Climate models are predicting a continuation of this pattern whereby hotter and drier weather conditions will result in continuing lower runoff, pushing the system toward a drying trend that is often characterized as long term drought.

City Council 27 – 101 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-4
Dramatic swings in annual hydrologic conditions have impacted water supplies available from the SWP over the last decade. The declining ecosystem in the Delta has also led to a reduction in water supply deliveries, and operational constraints, which will likely continue until a long-term solution to these problems is identified and implemented (MET, 2021).

Legal, environmental, and water quality issues may have impacts on MET supplies. It is felt, however, that climatic factors would have more of an impact than legal, water quality, and environmental factors.

Climatic conditions have been projected based on historical patterns but severe pattern changes are still a possibility in the future (MET, 2021).

7.2.2 Regulatory and Legal
Ongoing regulatory restrictions, such as those imposed by the Biops on the effects of SWP and the federal CVP operations on certain marine life, also contributes to the challenge of determining water delivery reliability. Endangered species protection and conveyance needs in the Delta have resulted in operational constraints that are particularly important because pumping restrictions impact many water resources programs – SWP supplies and additional voluntary transfers, Central Valley storage and transfers, and in-region groundwater and surface water storage. Biops protect special-status species listed as threatened or endangered under the ESAs and imposed substantial constraints on Delta water supply operations through requirements for Delta inflow and outflow and export pumping restrictions.

In addition, the SWRCB has set water quality objectives that must be met by the SWP including minimum Delta outflows, limits on SWP and CVP Delta exports, and maximum allowable salinity level. SWRCB plans to fully implement the new Lower San Joaquin River (LSJR) flow objectives from the Phase 1 Delta Plan amendments through adjudicatory (water rights) and regulatory (water quality) processes by 2022.

These LSJR flow objectives are estimated to reduce water available for human consumptive use.

New litigation, listings of additional species under the ESAs, or regulatory requirements imposed by the SWRCB could further adversely affect SWP operations in the future by requiring additional export reductions, releases of additional water from storage, or other operational changes impacting water supply operations.

The difficulty and implications of environmental review, documentation, and permitting pose challenges for multi-year transfer agreements, recycled water projects, and seawater desalination plants.

The timeline and roadmap for getting a permit for recycled water projects are challenging and inconsistently implemented in different regions of the state. Indirect potable reuse projects face regulatory restraints such as treatment, blend water, retention time, and Basin Plan Objectives, which may limit how much recycled water can feasibly be recharged into the groundwater basins. New regulations and permitting uncertainty are also barriers to seawater desalination supplies, including updated Ocean Plan Regulations, Marine Life Protected Areas, and Once-Through Cooling Regulations (MET, 2021).

7.2.3 Water Quality
The following sub-sections include narratives on water quality issues experienced in various water supplies, if any, and the measures being taken to improve the water quality of these sources.

City Council 27 – 102 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-5

7.2.3.1 Imported Water
MET is responsible for providing high quality potable water throughout its service area. Over 300,000 water quality tests are performed per year on MET’s water to test for regulated contaminants and additional contaminants of concern to ensure the safety of its waters. MET’s supplies originate primarily from the CRA and from the SWP. A blend of these two sources, proportional to each year’s availability of the source, is then delivered throughout MET’s service area.

MET’s primary water sources face individual water quality issues of concern. The CRA water source contains higher total dissolved solids (TDS) and the SWP contains higher levels of organic matter, lending to the formation of disinfection byproducts. To remediate the CRA’s high level of salinity and the SWP’s high level of organic matter, MET blends CRA and SWP supplies and has upgraded all of its treatment facilities to include ozone treatment processes. In addition, MET has been engaged in efforts to protect its Colorado River supplies from threats of uranium, perchlorate, and chromium VI while also investigating the potential water quality impact of the following emerging contaminants:

N-nitrosodimethylamine (NDMA), pharmaceuticals and personal care products (PPCP), microplastics, PFAS, and 1,4-dioxane (MET, 2021). While unforeseeable water quality issues could alter reliability, MET’s current strategies ensure the delivery of high-quality water.

The presence of quagga mussels in water sources is a water quality concern. Quagga mussels are an invasive species that was first discovered in 2007 at Lake Mead, on the Colorado River. This species of mussels forms massive colonies in short periods of time, disrupting ecosystems and blocking water intakes. They can cause significant disruption and damage to water distribution systems. MET has had success in controlling the spread and impacts of the quagga mussels within the CRA, however the future could require more extensive maintenance and reduced operational flexibility than current operations allow. It also resulted in MET eliminating deliveries of CRA water into Diamond Valley Lake to keep the reservoir free from quagga mussels (MET, 2021).

7.2.3.2 Groundwater
OCWD is responsible for managing the OC Basin. To maintain groundwater quality, OCWD conducts an extensive monitoring program that serves to manage the OC Basin’s groundwater production, control groundwater contamination, and comply with all required laws and regulations. A network of nearly 700 wells provides OCWD a source for samples, which are tested for a variety of purposes.

OCWD collects samples each month to monitor Basin water quality. The total number of water samples analyzed varies year-to-year due to regulatory requirements, conditions in the basin and applied research and/or special study demands. These samples are collected and tested according to approved federal and state procedures as well as industry-recognized quality assurance and control protocols (City of La Habra et al., 2017).

PFAS are of particular concern for groundwater quality, and since the summer of 2019, DDW requires testing for PFAS compounds in some groundwater production wells in the OCWD area. In February 2020, the DDW lowered its Response Levels (RL) for PFOA and PFOS to 10 and 40 parts per trillion (ppt) respectively. The DDW recommends Producers not serve any water exceeding the RL – effectively making the RL an interim Maximum Contaminant Level (MCL) while DDW undertakes administrative action to set a MCL. In response to DDW’s issuance of the revised RL, as of December 2020, City Council 27 – 103 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-6
approximately 45 wells in the OCWD service area have been temporarily turned off until treatment systems can be constructed. As additional wells are tested, OCWD expects this figure may increase to at least 70 to 80 wells. The state has begun the process of establishing MCLs for PFOA and PFOS and anticipates these MCLs to be in effect by the Fall of 2023. OCWD anticipates the MCLs will be set at or below the RLs.

In April 2020, OCWD as the groundwater basin manager, executed an agreement with the impacted Producers to fund and construct the necessary treatment systems for production wells impacted by PFAS compounds. The PFAS treatment projects includes the design, permitting, construction, and operation of PFAS removal systems for impacted Producer production wells. Each well treatment system will be evaluated for use with either granular activated carbon (GAC) or ion exchange (IX) for the removal of PFAS compounds. These treatment systems utilize vessels in a lead-lag configuration to remove PFOA and PFOS to less than 2 ppt (the current non-detect limit). Use of these PFAS treatment systems are designed to ensure the groundwater supplied by Producer wells can be served in compliance with current and future PFAS regulations. With financial assistance from OCWD, the Producers will operate and maintain the new treatment systems once they are constructed.

To minimize expenses and provide maximum protection to the public water supply, OCWD initiated design, permitting, and construction of the PFAS treatment projects on a schedule that allows rapid deployment of treatment systems. Construction contracts were awarded for treatment systems for production wells in the City of Fullerton and Serrano Water District in Year 2020. Additional construction contracts will likely be awarded in the first and second quarters of 2021. OCWD expects the treatment systems to be constructed for most of the initial 45 wells above the RL within the next 2 to 3 years.

As additional data are collected and new wells experience PFAS detections at or near the current RL, and/or above a future MCL, and are turned off, OCWD will continue to partner with the affected Producers and take action to design and construct necessary treatment systems to bring the impacted wells back online as quickly as possible.

Groundwater production in FY 2019-20 was expected to be approximately 325,000 AF but declined to 286,550 AF primarily due to PFAS impacted wells being turned off around February 2020.

OCWD expects groundwater production to be in the area of 245,000 AF in FY 2020-21 due to the currently idled wells and additional wells being impacted by PFAS and turned off. As PFAS treatment systems are constructed, OCWD expects total annual groundwater production to slowly increase back to normal levels (310,000 to 330,000 AF) (OCWD, 2020).

Salinity is a significant water quality problem in many parts of Southern California, including Orange County. Salinity is a measure of the dissolved minerals in water including both TDS and nitrates.

OCWD continuously monitors the levels of TDS in wells throughout the OC Basin. TDS currently has a California Secondary MCL of 500 mg/L. The portions of the OC Basin with the highest levels are generally located in the cities of Irvine, Tustin, Yorba Linda, Anaheim, and Fullerton. There is also a broad area in the central portion of the OC Basin where TDS ranges from 500 to 700 mg/L. Sources of TDS include the water supplies used to recharge the OC Basin and from onsite wastewater treatment systems, also known as septic systems. The TDS concentration in the OC Basin is expected to decrease over time as the TDS concentration of GWRS water used to recharge the OC Basin is approximately 50 mg/L (City of La Habra et al., 2017).

City Council 27 – 104 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-7
Nitrates are one of the most common and widespread contaminants in groundwater supplies, originating from fertilizer use, animal feedlots, wastewater disposal systems, and other sources. The MCL for nitrate in drinking water is set at 10 mg/L. OCWD regularly monitors nitrate levels in groundwater and works with producers to treat wells that have exceeded safe levels of nitrate concentrations. OCWD manages the nitrate concentration of water recharged by its facilities to reduce nitrate concentrations in groundwater.

This includes the operation of the Prado Wetlands, which was designed to remove nitrogen and other pollutants from the Santa Ana River before the water is diverted to be percolated into OCWD’s surface water recharge system.

Although water from the Deep Aquifer System is of very high quality, it is amber-colored and contains a sulfuric odor due to buried natural organic material. These negative aesthetic qualities require treatment before use as a source of drinking water. The total volume of the amber-colored groundwater is estimated to be approximately 1 MAF.

There are other potential contaminants that are of concern to and are monitored by OCWD.

These include:
 Methyl Tertiary Butyl Ether (MTBE) – MTBE is an additive to gasoline that increases octane ratings but became a widespread contaminant in groundwater supplies. The greatest source of MTBE contamination comes from underground fuel tank releases. The primary MCL for MTBE in drinking water is 13 µg/L.
 Volatile Organic Compounds (VOC) – VOCs come from a variety of sources including industrial degreasers, paint thinners, and dry cleaning solvents. Locations of VOC contamination within the OC Basin include the former El Toro marine Corps Air Station, the Shallow Aquifer System, and portions of the Principal Aquifer System in the Cities of Fullerton and Anaheim.  NDMA – NDMA is a compound that can occur in wastewater that contains its precursors and is disinfected via chlorination and/or chloramination. It is also found in food products such as cured meat, fish, beer, milk, and tobacco smoke. The California Notification Level for NDMA is 10 ng/L and the RL is 300 ng/L. In the past, NDMA has been found in groundwater near the Talbert Barrier, which was traced to industrial wastewater dischargers.  1,4-Dioxane – 1,4-Dioxane is a suspected human carcinogen. It is used as a solvent in various industrial processes such as the manufacture of adhesive products and membranes.  Perchlorate – Perchlorate enters groundwater through application of fertilizer containing perchlorate, water imported from the Colorado River, industrial or military sites that have perchlorate, and natural occurrence. Perchlorate was not detected in 84% of the 219 production wells tested between the years 2010 through 2014.
 Selenium – Selenium is a naturally occurring micronutrient found in soils and groundwater in the Newport Bay watershed. The bio-accumulation of selenium in the food chain may result in deformities, stunted growth, reduced hatching success, and suppression of immune systems in fish and wildlife. Management of selenium is difficult as there is no off-the-shelf treatment technology available.
 Constituents of Emerging Concern (CEC) – CECs are either synthetic or naturally occurring substances that are not currently regulated in water supplies or wastewater discharged but can City Council 27 – 105 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-8
be detected using very sensitive analytical techniques. The newest group of CECs include pharmaceuticals, personal care products, and endocrine disruptors. OCWD’s laboratory is one of a few in the state of California that continuously develops capabilities to analyze for new compounds (City of La Habra et al., 2017).

7.2.4 Locally Applicable Criteria
Within Orange County, there are no significant local applicable criteria that directly affect reliability.

Through the years, the water agencies in Orange County have made tremendous efforts to integrate their systems to provide flexibility to interchange with different sources of supplies. There are emergency agreements in place to ensure all parts of the County have an adequate supply of water. In the northern part of the County, agencies are able to meet a majority of their demands through groundwater with very little limitation, except for the OCWD BPP. For the agencies in southern Orange County, most of their demands are met with imported water where their limitation is based on the capacity of their system, which is very robust.

However, if a major earthquake on the San Andreas Fault occurs, it will be damaging to all three key regional water aqueducts and disrupt imported supplies for up to six months. The region would likely impose a water use reduction ranging from 10-25% until the system is repaired. However, MET has taken proactive steps to handle such disruption, such as constructing DVL, which mitigates potential impacts.

DVL, along with other local reservoirs, can store a six to twelve-month supply of emergency water (MET, 2021).

Water Service Reliability Assessment
This Section assesses the City’s reliability to provide water services to its customers under various hydrological conditions. This is completed by comparing the projected long-term water demand (Section 4), to the projected water supply sources available to the City (Section 6), in five-year increments, for a normal water year, a single dry water year, and a drought lasting five consecutive water years.

7.3.1 Normal Year Reliability
The water demand forecasting model developed for the Demand Forecast TM (described in Section 4.3), to project the 25-year demand for Orange County water agencies, also isolated the impacts that weather and future climate can have on water demand through the use of a statistical model. The explanatory variables of population, temperature, precipitation, unemployment rate, drought restrictions, and conservation measures were used to create the statistical model. The impacts of hot/dry weather condition are reflected as a percentage increase in water demands from the average condition. The average (normal) demand is represented by the average water demand of FY 2017-18 and FY 2018-19 (CDM Smith, 2021).

The City is 100 percent reliable for normal year demands from 2025 through 2045 (Table 7-2) due to diversified supply and conservation measures. For simplicity, the table shows supply to balance demand in the table. However, based on the purchase agreement the City has with MET (Section 6.2), the City is contractually able to purchase more water from MET, should the need arise. The City has entitlements to City Council 27 – 106 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-9
receive imported water from MET via connections to MET's regional distribution system. All imported water supplies are assumed available to the City from existing water transmission facilities, as per MET’s 2020 UWMP. The demand and supplies listed in Table 7-2 also include local groundwater supplies that are available to the City through OCWD by an assumed BPP of 85%, per Section 6.3.4.

Table 7-2: Retail: Normal Year Supply and Demand Comparison DWR Submittal Table 7-2 Retail: Normal Year Supply and Demand Comparison 2025 2030 2035 2040 2045
Supply totals (AF) 33,882 34,395 34,130 33,838 33,827
Demand totals (AF) 33,882 34,395 34,130 33,838 33,827
Difference (AF) 0 0 0 0 0
NOTES:

This table compares the projected demand and supply volumes determined in Sections

4.3.2 and 6.1, respectively.

7.3.2 Single Dry Year Reliability
A single dry year is defined as a single year of minimal to no rainfall within a period where average precipitation is expected to occur. The water demand forecasting model developed for the Demand Forecast TM (described in Section 4.3) isolated the impacts that weather and future climate can have on water demand through the use of a statistical model. The impacts of hot/dry weather condition are reflected as a percentage increase in water demands from the normal year condition (average of FY 2017-18 and FY 2018-19). For a single dry year condition (FY 2013-14), the model projects a six percent increase in demand for the OC Basin area where the City’s service area is located (CDM Smith, 2021).

Detailed information of the model is included in Appendix E.

The City has documented that it is 100 percent reliable for single dry year demands from 2025 through 2045 with a demand increase of 6% from normal demand with significant reserves held by MET, local groundwater supplies, and conservation. A comparison between the supply and the demand in a single dry year is shown in (Table 7-3). For simplicity, the table shows supply to balance the modeled demand in the table. However, based on the purchase agreement the City has with MET (Section 6.2), the City is contractually able to purchase more water from MET, should the need arise.

City Council 27 – 107 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-10
Table 7-3: Retail: Single Dry Year Supply and Demand Comparison DWR Submittal Table 7-3 Retail: Single Dry Year Supply and Demand Comparison 2025 2030 2035 2040 2045
Supply totals (AF) 35,915 36,459 36,178 35,868 35,857
Demand totals (AF) 35,915 36,459 36,178 35,868 35,857
Difference (AF) 0 0 0 0 0
NOTES:

It is conservatively assumed that a single dry year demand is 6% greater than each respective year's normally projected total water demand. Groundwater is sustainably managed through the BPP and robust management measures (Section 6.3.4 and Appendix G), direct and indirect recycled water uses provides additional local supply (Section 6.6), and based on MET’s UWMP, imported water is available to close any potable water supply gap that local sources cannot meet (Section

7.5.1).

7.3.3 Multiple Dry Year Reliability
Assessing the reliability to meet demand for five consecutive dry years is a new requirement for the 2020 UWMP, as compared to the previous requirement of assessing three or more consecutive dry years.

Multiple dry years are defined as five or more consecutive dry years with minimal rainfall within a period of average precipitation. The water demand forecasting model developed for the Demand Forecast TM (described in Section 4.3) isolated the impacts that weather and future climate can have on water demand through the use of a statistical model. The impacts of hot/dry weather condition are reflected as a percentage increase in water demands from the normal year condition (average of FY 2017-18 and FY 2018-19). For a single dry year condition (FY 2013-14), the model projects a six percent increase in demand for the OC Basin area where the City’s service area is located (CDM Smith, 2021). It is conservatively assumed that a five consecutive dry year scenario is a repeat of the single dry year over five consecutive years.

Even with a conservative demand increase of 6% each year for five consecutive years, the City is capable of meeting all customers’ demands from 2025 through 2045 (Table 7-4), with significant reserves held by MET and conservation. For simplicity, the table shows supply to balance the modeled demand in the table. However, based on the purchase agreement the City has with MET (Section 6.2), the City is contractually able to purchase more water from MET, should the need arise.

City Council 27 – 108 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-11
Table 7-4: Retail: Multiple Dry Years Supply and Demand Comparison DWR Submittal Table 7-4 Retail: Multiple Dry Years Supply and Demand Comparison 2025* 2030* 2035* 2040* 2045*
(Opt)
First year
Supply totals 35,581 36,024 36,403 36,116 35,866
Demand
totals 35,581 36,024 36,403 36,116 35,866
Difference 0 0 0 0 0
Second year
Supply totals 35,665 36,133 36,347 36,054 35,864
Demand
totals 35,665 36,133 36,347 36,054 35,864
Difference 0 0 0 0 0
Third year
Supply totals 35,748 36,241 36,290 35,992 35,861
Demand
totals 35,748 36,241 36,290 35,992 35,861
Difference 0 0 0 0 0
Fourth year
Supply totals 35,831 36,350 36,234 35,930 35,859
Demand
totals 35,831 36,350 36,234 35,930 35,859
Difference 0 0 0 0 0
Fifth year
Supply totals 35,915 36,459 36,178 35,868 35,857
Demand
totals 35,915 36,459 36,178 35,868 35,857
Difference 0 0 0 0 0
NOTES:

It is conservatively assumed that a five consecutive dry year scenario is a repeat of the single dry year (106% of projected normal year values) over five consecutive years. The 2025 column assesses supply and demand for FY 2020-21 through FY 2024-25; the 2030 column assesses FY 2025-26 through FY 2029-30 and so forth, in order to end the water service reliability assessment in FY 2044-45.

Groundwater is sustainably managed through the BPP and robust management measures (Section

6.3.4 and Appendix G), direct and indirect recycled water uses provide additional local supply (Section

6.6), and based on MET's UWMP, imported water is available to close any potable water supply gap that local sources cannot meet (Section 7.5.1).

City Council 27 – 109 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-12
Management Tools and Options
Existing and planned water management tools and options for the City, OCWD, and MWDOC’s service area that seek to maximize local resources and result in minimizing the need to import water are described below. Although they are a direct MET Member Agency, the City benefits from collaboration between MWDOC and OCWD to maximize local resources.
 Reduced Delta Reliance: MET has demonstrated consistency with Reduced Reliance on the Delta Through Improved Regional Water Self-Reliance (Delta Plan policy WR P1) by reporting the expected outcomes for measurable reductions in supplies from the Delta. MET has improved its self-reliance through methods including water use efficiency, water recycling, stormwater capture and reuse, advanced water technologies, conjunctive use projects, local and regional water supply and storage programs, and other programs and projects. In 2020, MET had a 602,000 AF change in supplies contributing to regional-self-reliance, corresponding to a

15.3% change, and this amount is projected to increase through 2045 (MET, 2021). For detailed information on the Delta Plan Policy WR P1, refer to Appendix C.  The continued and planned use of groundwater: The water supply resources within the City’s service area are enhanced by the existence of groundwater basins that account for the majority of local supplies available and are used as reservoirs to store water during wet years and draw from storage during dry years, subsequently minimizing the City’s reliance on imported water.

Groundwater basins are managed within a safe basin operating range so that groundwater wells are only pumped as needed to meet water use. The City supports and partners in recycled water efforts, including groundwater recharge, through its coordination with OCWD and OC San.

The City is currently planning for new well construction and major well rehabilitation at seven well sites, described in Section 6.9.
 Groundwater storage and transfer programs: MET and OCWD’s involvement in SARCCUP includes participation in a CUP that improves water supply resiliency and increases available dry-year yield from local groundwater basins. The groundwater bank has 137,000 AF of storage (OCWD, 2020b). Additionally, MET has numerous groundwater storage and transfer programs in which MET endeavors to increase the reliability of water supplies, including the AVEK Waster Agency Exchange and Storage Program and the High Desert Water Bank Program. The IRWD Strand Ranch Water Banking Program has approximately 23,000 AF stored for IRWD’s benefit, and by agreement, the water is defined to be an "Extraordinary Supply" by MET and counts essentially 1:1 during a drought/water shortage condition under MET’s Water Supply Allocation Plan. In addition, MET has encouraged storage through its cyclic and conjunctive use programs that allow MET to deliver water into a groundwater basin in advance of agency demands, such as the Cyclic Storage Agreements under the Main San Gabriel Basin Judgement.
 Water Loss Program: The water loss audit program reduces MET’s dependency on imported water from the Delta by implementing water loss control technologies after assessing audit data and leak detection.
 Increased use of recycled water: The City partners with OCWD in recycled water efforts to identify opportunities for the use of recycled water for irrigation purposes, groundwater recharge City Council 27 – 110 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-13
and some non-irrigation applications. OCWD’s GWRS and GAP allow Southern California to decrease its dependency on imported water and create a local and reliable source of water that meet or exceed all federal and state drinking level standards. Expansion of the GWRS is currently underway to increase the plant’s production to 130 MGD, and further reduce reliance on imported water.
 Implementation of demand management measures during dry periods: During dry periods, water reduction methods to be applied to the public through the retail agencies, will in turn reduce the City’s overall demands on MET and reliance on imported water. The City’s specific demand management measures are further discussed in Section 9.

Drought Risk Assessment
Water Code Section 10635(b) requires every urban water supplier include, as part of its UWMP, a DRA for its water service as part of information considered in developing its DMMs and water supply projects and programs. The DRA is a specific planning action that assumes the City is experiencing a drought over the next five years and addresses the City’s reliability in the context of presumed drought conditions. Together, the water service reliability assessment (Sections 7.1 through 7.3), DRA, and WSCP (Section 8 and Appendix H) allow the City to have a comprehensive picture of its short-term and long-term water service reliability and to identify the tools to address any perceived or actual shortage conditions.

Water Code Section 10612 requires the DRA to be based on the driest five-year historic sequence of the City’s water supply. However, Water Code Section 10635 also requires that the analysis consider plausible changes on projected supplies and demands due to climate change, anticipated regulatory changes, and other locally applicable criteria.

The following sections describe the City’s methodology and results of its DRA.

7.5.1 DRA Methodology
The water demand forecasting model developed for the Demand Forecast TM (described in Section 4.3 isolated the impacts that weather and future climate can have on water demand through the use of a statistical model. The impacts of hot/dry weather condition are reflected as a percentage increase in water demands from the average condition (average of FY 2017-18 and FY 2018-19). For a single dry year condition (FY 2013-14), the model projects a 6% increase in demand for the region encompassing the City’s service area (CDM Smith, 2021).

Locally, the five-consecutive years of FY 2011-12 through FY 2015-16 represent the driest five consecutive year historic sequence for the City’s water supply. This period that spanned water years 2012 through 2016 included the driest four-year statewide precipitation on record (2012-2015) and the smallest Sierra Cascades snowpack on record (2015, with 5% of average). It was marked by extraordinary heat: 2014, 2015 and 2016 were California’s first, second and third warmest year in terms of statewide average temperatures. Locally, Orange County rainfall for the five year period totaled 36 inches, the driest on record.

City Council 27 – 111 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-14
As explained in Section 6, the City currently relies on, and will continue to rely on, three main water sources: local groundwater, recycled water, and imported water supply from MET. The City maximizes local water groundwater supply use before the purchase of imported water. The difference between total forecasted demands and local supply projections is the demand on MET’s imported water supplies from the Colorado River, SWP, and in-region storage. Local groundwater supply for the City comes from the OC Basin and is dictated by the BPP set annually by OCWD. Therefore, the City’s DRA focuses on the assessment of imported water from MET, which will be used to close any potable water supply gap local groundwater does not fill.

Water Demand Characterization
Beyond local supplies, the City’s water supplies are purchased from MET, regardless of hydrologic conditions. As described in Section 6.2, MET’s supplies are from the Colorado River, SWP, and in-region storage. In their 2020 UWMP, MET’s DRA concluded that even without activating WSCP actions, MET can reliably provide water to all of their member agencies, including the City, through 2045, assuming a five-year drought from FY 2020-21 through FY 2024-25. Beyond this, MET’s DRA indicated a surplus of supplies that would be available to all of its member agencies, including the City, should the need arise.

Therefore, any increase in demand that is experienced in the City's service area will be met by MET's water supplies.

Based on the Demand Forecast TM, in a single dry year, demand is expected to increase by 6% above a normal year. The City’s DRA conservatively assumes a drought from FY 2020-21 through FY 2024-25 is a repeat of the single dry year over five consecutive years.

The City’s demand projections were developed as part of the Demand Forecast TM, led by MWDOC.

As part of the study, MWDOC first estimated total retail demands for its service area. This was based on estimated future demands using historical water use trends, future expected water use efficiency measures, additional projected land-use development, and changes in population. The City’s projected water use, linearly interpolated per the demand forecast, is presented annually for the next five years in Table 4-2. Next, MWDOC estimated the projections of local supplies derived from current and expected local supply programs from the participating agencies. Finally, the demand model calculated the difference between total forecasted demands and local supply projections. The resulting difference between total demands net of savings from conservation and local supplies is the expected regional demands on MET supply.

Water Supply Characterization
The City’s assumptions for its supply capabilities are discussed and presented in 5-year increments under its UWMP water reliability assessment. For the City’s DRA, these supply capabilities are further refined and presented annually for the years 2021 to 2025 by assuming a repeat of historic conditions from FY 2011-12 to FY 2015-16. For its DRA, the City assessed the reliability of supplies available from MET using historical supply availability under dry-year conditions. MET’s supply sources under the Colorado River, SWP, and in-region supply categories are individually listed and discussed in detail in MET’s UWMP. Future supply capabilities for each of these supply sources are also individually tabulated in Appendix 3 of MET’s UWMP, with consideration for plausible changes on projected supplies under climate change conditions, anticipated regulatory changes, and other factors. In addition, the City has access to supply augmentation actions through MET. MET may exercise these actions based on regional City Council 27 – 112 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-15
need, and in accordance with their WSCP, and may include the use of supplies and storage programs within the Colorado River, SWP, and In-Region.

7.5.2 Total Water Supply and Use Comparison
The City’s DRA concludes that water supplies meet total water demand, assuming a five-year consecutive drought from FY 2020-21 through FY 2024-25 (Table 7-5). For simplicity, the table shows supply to balance the modeled demand in the table. However, based on the purchase agreement the City has with MET (Section 6.2), the City is contractually able to purchase more water from MET, should the need arise.

Table 7-5: Five-Year Drought Risk Assessment Tables to Address Water Code Section 10635(b) DWR Submittal Table 7-5: Five-Year Drought Risk Assessment Tables to address Water Code Section 10635(b)
2021 Total
Total Water Use 35,581
Total Supplies 35,581
Surplus/Shortfall w/o WSCP Action 0
Planned WSCP Actions (use reduction and supply augmentation) WSCP - supply augmentation benefit 0
WSCP - use reduction savings benefit 0
Revised Surplus/(shortfall) 0
Resulting % Use Reduction from WSCP action 0%
2022 Total
Total Water Use 35,665
Total Supplies 35,665
Surplus/Shortfall w/o WSCP Action 0
Planned WSCP Actions (use reduction and supply augmentation) WSCP - supply augmentation benefit 0
WSCP - use reduction savings benefit 0
Revised Surplus/(shortfall) 0
City Council 27 – 113 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-16
DWR Submittal Table 7-5: Five-Year Drought Risk Assessment Tables to address Water Code Section 10635(b)
Resulting % Use Reduction from WSCP action 0%
2023 Total
Total Water Use 35,748
Total Supplies 35,748
Surplus/Shortfall w/o WSCP Action 0
Planned WSCP Actions (use reduction and supply augmentation) WSCP - supply augmentation benefit 0
WSCP - use reduction savings benefit 0
Revised Surplus/(shortfall) 0
Resulting % Use Reduction from WSCP action 0%
2024 Total
Total Water Use 35,831
Total Supplies 35,831
Surplus/Shortfall w/o WSCP Action 0
Planned WSCP Actions (use reduction and supply augmentation) WSCP - supply augmentation benefit 0
WSCP - use reduction savings benefit 0
Revised Surplus/(shortfall) 0
Resulting % Use Reduction from WSCP action 0%
2025 Total
Total Water Use 35,915
Total Supplies 35,915
City Council 27 – 114 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-17
DWR Submittal Table 7-5: Five-Year Drought Risk Assessment Tables to address Water Code Section 10635(b)
Surplus/Shortfall w/o WSCP Action 0
Planned WSCP Actions (use reduction and supply augmentation) WSCP - supply augmentation benefit 0
WSCP - use reduction savings benefit 0
Revised Surplus/(shortfall) 0
Resulting % Use Reduction from WSCP action 0%
Note: Groundwater is sustainably managed through the BPP and robust management measures (Section

6.3.4 and Appendix G), direct and indirect recycled water uses provide additional local supply (Section

6.6), and based on MET’s UWMP, imported water is available to close any potable water supply gap that local sources cannot meet (Section 7.5.1).

7.5.3 Water Source Reliability
Locally, approximately 77% (BPP for Water Year 2021-22) of the City’s total water supply can rely on OC Basin groundwater through FY 2024-25. The BPP is projected to increase to 85% starting in FY 2024-25. Based on various storage thresholds and hydrologic conditions, OCWD, who manages the OC Basin, has numerous management measures that can be taken, such as adjusting the BPP or seeking additional supplies to refill the basin, to ensure the reliability of the Basin. For more information on the OC Basin’s management efforts, refer to Section 6.3.

Additionally, the City’s use of direct (OCWD GAP) and indirect recycled water (OCWD GWRS) should also be considered. The ability to continue producing water locally greatly improves the City’s water reliability. More detail on these programs is available in Section 6.6 .

Furthermore, as discussed in Section 6.2 the City has a 10-year purchase agreement with MET that sets a minimum and maximum volume of water to be purchased from MET annually, and over the 10-year contract term. Currently, the City is not currently purchasing near the maximum levels. As so, the City is contractually able to purchase significantly more MET water should the need arise.

Moreover, although they would not normally be considered part of the City’s water portfolio, the emergency interconnections the City has with the surrounding Cities of Costa Mesa, Fountain Valley, Garden Grove, Orange, Tustin, and Southern California Water Company could help mitigate any water supply shortages, though shortages are not expected. Emergency interconnections are described in Section 6.8.

The City’s DRA concludes that its water supplies meet total water demand, assuming a five-year consecutive drought from FY 2020-21 through FY 2024-25 (Table 7-5). For simplicity, the table shows supply to balance the modeled demand in the table. However, based on the purchase agreement the City City Council 27 – 115 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
7-18
has with MET (Section 6.2), the City is contractually able to purchase more water from MET, should the need arise.

As detailed in Section 8, the City has in place a robust WSCP and comprehensive shortage response planning efforts that include demand reduction measures and supply augmentation actions. However, since the City’s DRA shows a balance between water supply and demand, no water service reliability concern is anticipated, and no shortfall mitigation measures are expected to be exercised over the next five years. The City will periodically revisit its representation of the supply sources and of the gross water use estimated for each year and will revise its DRA if needed.

City Council 27 – 116 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
8-1
8 WATER SHORTAGE CONTINGENCY PLANNING
Layperson Description
Water shortage contingency planning is a strategic planning process that the City engages to prepare for and respond to water shortages. A water shortage, when water supply available is insufficient to meet the normally expected customer water use at a given point in time, may occur due to a number of reasons, such as water supply quality changes, climate change, drought, and catastrophic events (e.g., earthquake). The City’s WSCP provides real-time water supply availability assessment and structured steps designed to respond to actual conditions. This level of detailed planning and preparation will help maintain reliable supplies and reduce the impacts of supply interruptions.

Water Code Section 10632 requires that every urban water supplier that serves more than 3,000 AFY or have more than 3,000 connections prepared and adopt a standalone WSCP as part of its UWMP. The WSCP is required to plan for a greater than 50% supply shortage. This WSCP due to be updated based on new requirements every five years and will be adopted as a current update for submission to DWR by July 1, 2021.

Overview of the WSCP
The WSCP serves as the operating manual that the City will use to prevent catastrophic service disruptions through proactive, rather than reactive, mitigation of water shortages. The WSCP contains processes and procedures documented in the WSCP, which are given legal authority through the WSCP Response Ordinance. This way, when shortage conditions arise, the City’s governing body, its staff, and the public can easily identify and efficiently implement pre-determined steps to mitigate a water shortage to the level appropriate to the degree of water shortfall anticipated. Figure 8-1 illustrates the interdependent relationship between the three procedural documents related to planning for and responding to water shortages.

City Council 27 – 117 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
8-2
Figure 8-1: UWMP Overview
A copy of the City’s WSCP is provided in Appendix H and includes the steps to assess if a water shortage is occurring, and what level of shortage drought actions to trigger the best response as appropriate to the water shortage conditions. WSCP has prescriptive elements, including an analysis of water supply reliability; the drought shortage actions for each of the six standard water shortage levels, that correspond to water shortage percentages ranging from 10% to greater than 50%; an estimate of potential to close supply gap for each measure; protocols and procedures to communicate identified actions for any current or predicted water shortage conditions; procedures for an annual water supply and demand assessment; monitoring and reporting requirements to determine customer compliance; reevaluation and improvement procedures for evaluating the WSCP.

Summary of Water Shortage Response Strategy and Required DWR Tables
This WSCP is organized into three main sections, with Section 3 aligned with the Water Code Section 16032 requirements.

Section 1 Introduction and WSCP Overview gives an overview of the WSCP fundamentals.

Section 2 Background provides a background on the City’s water service area.

Section 3.1 Water Supply Reliability Analysis provides a summary of the water supply analysis and water reliability findings from the 2020 UWMP.

Section 3.2 Annual Water Supply and Demand Assessment Procedures provide a description of procedures to conduct and approve the Annual Assessment.

Section 3.3 Six Standard Water Shortage Stages explains the WSCP’s six standard water shortage levels corresponding to progressive ranges of up to 10, 20, 30, 40, 50, and more than 50% shortages.

City Council 27 – 118 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
8-3
Section 3.4 Shortage Response Actions describes the WSCP’s shortage response actions that align with the defined shortage levels.

Section 3.5 Communication Protocols addresses communication protocols and procedures to inform customers, the public, interested parties, and local, regional, and state governments, regarding any current or predicted shortages and any resulting shortage response actions.

Section 3.6 Compliance and Enforcement describes customer compliance, enforcement, appeal, and exemption procedures for triggered shortage response actions.

Section 3.7 Legal Authorities is a description of the legal authorities that enable the City to implement and enforce its shortage response actions.

Section 3.8 Financial Consequences of the WSCP provides a description of the financial consequences of and responses for drought conditions.

Section 3.9 Monitoring and Reporting describes monitoring and reporting requirements and procedures that ensure appropriate data is collected, tracked, and analyzed for purposes of monitoring customer compliance and to meet state reporting requirements.

Section 3.10 WSCP Refinement Procedures addresses reevaluation and improvement procedures for monitoring and evaluating the functionality of the WSCP.

Section 3.11 Special Water Feature Distinction.

Section 3.12 Plan Adoption, Submittal, and Implementation provides a record of the process the City followed to adopt and implement its WSCP.

The WSCP is based on adequate details of demand reduction and supply augmentation measures that are structured to match varying degrees of shortage will ensure the relevant stakeholders understand what to expect during a water shortage situation. The City has adopted water shortage levels consistent with the requirements identified in Water Code Section 10632 (a)(3)(A) (Table 8-1).

The supply augmentation actions that align with each shortage level are described in DWR Table 8-3 (Appendix B). These augmentations represent short-term management objectives triggered by the WSCP and do not overlap with the long-term new water supply development or supply reliability enhancement projects.

The demand reduction measures that align with each shortage level are described in DWR Table 8-2 (Appendix B). This table also estimates the extent to which that action will reduce the gap between supplies and demands to demonstrate to the that choose suite of shortage response actions can be expected to deliver the expected outcomes necessary to meet the requirements of a given shortage level.

City Council 27 – 119 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
8-4
Table 8-1: Water Shortage Contingency Plan Levels
Submittal Table 8-1 Water Shortage Contingency Plan Levels Shortage
Level
Percent
Shortage Range Shortage Response Actions
0 0% (Normal)
A Level 0 Water Supply Shortage – Condition exists when the City notifies its water users that no supply reductions are anticipated in this year. The City proceeds with planned water efficiency best practices to support consumer demand reduction in line with state mandated requirements and local City goals for water supply reliability. Permanent water waste prohibitions are in place as stipulated in the City’s Water Shortage Response Ordinance.
1 Up to 10%
A Level 1 Water Supply Shortage – Condition exists when the City notifies its water users that due to drought or other supply reductions, a consumer demand reduction of up to 10% is necessary to make more efficient use of water and respond to existing water conditions. Upon the declaration of a Water Aware condition, the City shall implement the mandatory Level 1 conservation measures identified in this ordinance. The type of event that may prompt the City to declare a Level 1 Water Supply Shortage may include, among other factors, a finding that its wholesale water provider calls for extraordinary water conservation.
2 11% to 20%
A Level 2 Water Supply Shortage – Condition exists when the City notifies its water users that due to drought or other supply reductions, a consumer demand reduction of up to 20% is necessary to make more efficient use of water and respond to existing water conditions. Upon declaration of a Level 2 Water Supply Shortage condition, the City shall implement the mandatory Level 2 conservation measures identified in this ordinance.
3 21% to 30%
A Level 3 Water Supply Shortage – Condition exists when the City declares a water shortage emergency condition pursuant to California Water Code section 350 and notifies its residents and businesses that up to 30% consumer demand reduction is required to ensure sufficient supplies for human consumption, sanitation and fire protection. The City must declare a Water Supply Shortage Emergency in the manner and on the grounds provided in California Water Code section 350. 4 31% to 40%
A Level 4 Water Supply Shortage – Condition exists when the City declares a water shortage emergency condition pursuant to California Water Code section 350 and notifies its residents and businesses that up to 40% consumer demand reduction is required to ensure sufficient supplies for human consumption, sanitation and fire protection. The City must declare a Water Supply Shortage Emergency in the manner and on the grounds provided in California Water Code section 350.

City Council 27 – 120 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
8-5
Submittal Table 8-1 Water Shortage Contingency Plan Levels 5 41% to 50%
A Level 5 Water Supply Shortage – Condition exists when the City declares a water shortage emergency condition pursuant to California Water Code section 350 and notifies its residents and businesses that up to 50% or more consumer demand reduction is required to ensure sufficient supplies for human consumption, sanitation and fire protection. The City must declare a Water Supply Shortage Emergency in the manner and on the grounds provided in California Water Code section 350. 6 >50%
A Level 6 Water Supply Shortage – Condition exists when the City declares a water shortage emergency condition pursuant to California Water Code section 350 and notifies its residents and businesses that greater than 50% or more consumer demand reduction is required to ensure sufficient supplies for human consumption, sanitation and fire protection. The City must declare a Water Supply Shortage Emergency in the manner and on the grounds provided in California Water Code section 350.

NOTES:

Water shortage contingency planning is a strategic planning process to prepare for and respond to water shortages. Detailed planning and preparation can help maintain reliable supplies and reduce the impacts of supply interruptions. This chapter provides a structured plan for dealing with water shortages, incorporating prescriptive information and standardized action levels, along with implementation actions in the event of a catastrophic supply interruption.

A well-structured WSCP allows real-time water supply availability assessment and structured steps designed to respond to actual conditions, to allow for efficient management of any shortage with predictability and accountability. A water shortage, when water supply available is insufficient to meet the normally expected customer water use at a given point in time, may occur due to a number of reasons, such as population growth, climate change, drought, and catastrophic events. The WSCP is the City’s operating manual that is used to prevent catastrophic service disruptions through proactive, rather than reactive, management. This way, if and when shortage conditions arise, the City’s governing body, its staff, and the public can easily identify and efficiently implement pre-determined steps to manage a water shortage.

City Council 27 – 121 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-1
9 DEMAND MANAGEMENT MEASURES
The City, along with other Retail water agencies throughout Orange County, recognizes the need to use existing water supplies efficiently. This ethic of efficient use of water has evolved as a result of the development and implementation of water use efficiency programs that make good economic sense and reflect responsible stewardship of the region’s water resources. The City works closely with MET and MWDOC to promote regional efficiency by participating in the MET regional water savings programs. This chapter communicates the City’s efforts to promote conservation and to reduce demand on water supplies. A detailed description of demand management measures is available in Appendix J.

Demand Management Measures for Retail Suppliers
The goal of the Demand Management Measures (DMM) section is to provide a comprehensive description of the water conservation programs that a supplier has implemented, is currently implementing, and plans to implement in order to meet its urban water use reduction targets. The reporting requirements for DMM has been significantly modified and streamlined in 2014 by Assembly Bill 2067. This section of the UWMP will report on the role of the City’s programs in meeting new state regulations for complying with the SWRCB’s new Conservation Framework. These categories of demand management measures are as follows:
 Water waste prevention ordinances;
 Metering;
 Conservation pricing;
 Public education and outreach;
 Programs to assess and manage distribution system real loss;  Water conservation program coordination and staffing support;  Other demand management measures that have a significant impact on water use as measured in gallons per capita per day, including innovative measures, if implemented;  Programs to assist retailers with Conservation Framework Compliance

9.1.1 Water Waste Prevention Ordinances
The City Council adopted the Water Conservation and Supply Shortage Program Ordinance No. NS-2877 on May 19, 2015. Ordinance No. NS-2877 establishes permanent water conservation requirements and prohibition against waste that are effective at all times and is not dependent upon a water shortage for implementation, as follows:
 No washing down hard or paved surfaces
 Limit on watering hours
 Re-circulating water required for water fountains and decorative water features  Drinking water served upon request only
City Council 27 – 122 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-2
 Limits on washing vehicles
 Commercial lodging establishments must provide guests option to decline daily linen services  Restaurants required to use water conserving dish wash spray valves  Obligation to fix leaks, break, or malfunctions
 No installation of single pass cooling systems
 Commercial car wash systems
 No excessive water flow or runoff
 No installation of non-recirculating water systems in commercial car wash and laundry systems
 No watering during or within 48 hours of measurable rainfall  No irrigation of ornamental turf on public street medians with potable water  Limit on irrigation with potable water of landscapes outside of new construction In an event of a water supply shortage, the ordinance further establishes six levels of water supply shortage response actions to be implemented during times of declared water shortage or declared water shortage emergency, with increasing restrictions on water use in response to worsening drought or emergency conditions and decreasing supplies. The provisions and water conservation measures to be implemented in response to each shortage level are described in the Water Shortage Contingency Plan (WSCP) located in Appendix H of this 2020 UWMP. The City’s water conservation ordinance is included in Appendix D of the WSCP. The City maintains active water wasting prohibition measures at all times and has the ability to implement additional measures as water conservation needs dictate The City maintains active water wasting prohibition measures at all times and has the ability to implement additional measures as water conservation needs dictate. In 2015, as a result of the Governor’s drought mandates, the City began to track its water wasting prohibition enforcement activities. On June 2, 2015 the City declared a Phase 2 water supply shortage in Resolution No. 2015-025 by formally requiring all water consumers to reduce use by 12% relative to their 2013 consumption. Additionally, on August 4, 2015, a water wasting penalty rate was established by Resolution No. 2015-047. This new penalty rate permits City staff to penalize those users not meeting their water use reduction targets of 12%. The City of Santa Ana as a whole has been meeting its State mandated target; as a result the City has yet to impose any monetary penalties on any of its users. The City has communicated the water wasting prohibitions and water conservation measures via various communication outlets available including messaging on water bills, bill inserts, bill envelopes, the City website, bus shelter advertisements, City newsletters, pole banners across the City, and a water conservation booth at community events. As a result, in 2015 the City received 1,064 water waster complaints: a dramatic increase from prior years. The City intends to continue both its water waste enforcement efforts and water conservation messaging in the future; however, the intensity of both activities will be directly related to the level of water conservation required to meet stated use reductions.

City Council 27 – 123 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-3

9.1.2 Metering
The City requires individual metering for all new connections and bills by volume-of-use. All existing connections are metered.

The City has a meter replacement and calibration program in place. Over the past 5 years, the program focused on replacing aging meters and those with high use, replacing approximately 500-1,000 meters per year. In 2020, the City Council approved a project proposal to expand the meter replacement and calibration program by implementing and deploying Automated Meter Infrastructure (AMI) and a proactive calibration and testing program focused on periodically testing high use meters. The City will replace all meters to the AMI system over a 42 month period. The City is also upgrading the billing system software and customer portals, etc.

In accordance with the City’s municipal code, all new development with over 1,000 square feet of landscape requires the installation of dedicated landscape meters. The City has also adopted a policy requiring individual metering of all users such as individual tenants of commercial plazas, residential condominiums, and apartments.

9.1.3 Conservation Pricing
There are two parts to the City’s water service charges: a fixed Basic Service Charge and a variable Commodity Charge. The Basic Service Charge is a fixed amount based on the connection’s meter size and is billed bi-monthly. The Commodity Charge is determined by the amount of water served to the property and is measured in hundred cubic feet (HCF). The City also provides private fire water service and recycled water to specific customers and also has a Private Fire Service Charge and a Recycled Water Commodity Charge.

The City’s current Commodity Charge rate schedule and Tier Allocation, effective from January 1, 2020, was approved in 2019 and is shown in Table 9-1 and Table 9-2, respectively.

Table 9-1: Water Rates Effective January 1, 2020
City Council 27 – 124 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-4
Table 9-2: Water Tier Allocations Effective January 1, 2020

9.1.4 Public Education and Outreach
The City administers its own public education and outreach program and develops, coordinates, and delivers a substantial number of public information, education, and outreach events aimed at elevating consumer awareness and understanding of current water issues as well as efficient wat er use and water­saving practices, sound policy, and water reliability investments that are in the b est interest of the region. These efforts encourage good water stewardship that benefit all City res idents, businesses, and industries across all demographics. The City also collaborates with MWD OC and their educational programming. Several examples are shown in Figures 9­1 to 9­8.

City Council 27 – 125 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-5
Figure 9-1: Youth Outreach Flyer
Figure 9-2: Outreach and Education Material
City Council 27 – 126 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-6
Figure 9-3: Outreach Event Photo 1
Figure 9-4: Outreach Event Photo 2
City Council 27 – 127 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-7
Figure 9-5: Outreach Event Photo 3
Figure 9-6: Outreach Event Photo 4
City Council 27 – 128 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-8
Figure 9-7: Landscape Transformation Program Outreach Flyer, Page 1 Figure 9-8: Landscape Transformation Program Outreach Flyer, Page 2 City Council 27 – 129 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-9
Print and Electronic Materials
The City of Santa Ana offers a variety of print and electronic materials that are designed to assist City’s water users of all ages in discovering where their water comes from, what the water industry professionals are doing to address water challenges, how to use water most efficiently, and more.

Through the City’s social media presence, its website, Santa Ana Green newsletter, public service announcements, flyers, brochures, and other outreach materials, The City ensures that its residents are equipped with sufficient information and subject knowledge to assist them in making good behavioral and civic choices that ultimately affect the quality and quantity of the region’s water supply.

Public Events
Each year, the City of Santa Ana participates in an array of public events intended to engage and educate a diverse range of water users in water use efficiency and water quality topics. Some of these public events include:
 Children’s Water Education Festival the largest festival of its kind, takes place every March at the University of California, Irvine.

The Festival presents a unique opportunity to educate students about local water issues and help them understand how they can protect and preserve water and their environment. Approximately 7,000 third, fourth and fifth grade students attend the event, presented by the Orange County Water District (OCWD), the Disneyland Resort, the National Water Research Institute and the OCWD Groundwater Guardian Team.

This two-day event brings students and their teachers together to learn about the importance of our natural resources. Students who attend the Festival are presented with a unique opportunity to learn about their local water issues and what they can do in their homes and community to protect and conserve water and the environment. Organizations and public agencies from Orange County and throughout California dedicate their time to help educate these young environmental stewards. Since its inception, more than 135,000 children from schools throughout Orange County have been able to experience the Festival and all it has to offer.  City-Sponsored or Private Events provide opportunities to interact with the City’s water users in a fun and friendly way, offer useful water-related information and education to engage them in important discussions about the value of water and how their decisions at home, at work, and as tax- or ratepayers may impact the City’s quality and quantity of water for generations to come.

Education Programs and Initiatives
Over the past several years, the City of Santa Ana has amplified its efforts in water education programs and activities throughout its service area. This is accomplished by continuing to grow professional networks and partnerships that consist of education groups, advisories, Communication Linkage Forums and SAUSD teachers’ groups for water­centric learning. Several key water education programs and initiatives include:

City Council 27 – 130 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-10
 Landscape Training Classes provide Santa Ana’s residents with an opportunity to learn about rainwater capture, gardening practices that build a healthy soil, proper plant selection that are consistent with our local environment. These classes educate City’s customers to conserve water in their landscapes through sound practices and water-wise choices.  Choice School Programs The City of Santa Ana collaborates with MWDOC to provide educational programs and activities for the City’s youngest water users. Through this collaboration, the City has supplied its K-12 students with water-focused learning experiences for nearly five (5) decades. Interactive, grade-specific lessons invite students to connect with, and learn from, their local ecosystems, guiding them to identify and solve local water-related environmental challenges affecting their communities. Choice School Programs are aligned with state standards, and participation includes a dynamic in-class or virtual presentation, and preand post-activities that encourage and support Science, Technology, Engineering, Arts and Mathematics (STEAM)-based learning and good water stewardship.  City of Santa Ana’s Annual Youth Water Poster Contest is an annual activity developed to encourage City’s K-12 students to investigate and explore their relationship to water, connect the importance of good water stewardship to their daily lives, and express their conclusions creatively through art. Each year, the City of Santa Ana receives hundreds of entries, and 12 winners from across the City are invited to attend a special awards ceremony with their parents and teachers.

9.1.5 Programs to Assess and Manage Distribution System Real Loss Senate Bill 1420 signed into law in September 2014 requires urban water suppliers that submit UWMPs to calculate annual system water losses using the water audit methodology developed by the AWWA. SB 1420 requires the water loss audit be submitted to DWR every five years as part of the urban water supplier’s UWMP. Water auditing is the basis for effective water loss control. DWR’s UWMP Guidebook include a water audit manual intended to help water utilities complete the AWWA Water Audit on an annual basis.

A Water Loss Audit was completed for the City which identified areas for improvement and quantified total loss. Based on the data presented, the three priority areas identified were water imported, billed metered, and unauthorized consumption. Multiple criteria are a part of each validity score and a system wide approach will need to be implemented for the City’s improvement. The City completes a system water audit to calculate water losses on an annual basis. As part of the AMI project, the City will be adding the customer leak detection and system leak detection sensors system-wide. Expressing water loss audit results in terms of Real Losses per Service Connection per Day allows for standardized comparison across retailer agencies and is a metric consistent with the Water Board’s forthcoming economic model.

The Real Losses per Service Connection per Day for calendar year 2019 was 19.59 gal/connection/day.

City Council 27 – 131 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-11

9.1.6 Water Conservation Program Coordination and Staffing Support The City’s Water Service Quality Coordinator, a position created in 1991, acts as the water conservation coordinator. The conservation coordinator is responsible for conservation program activities and acts as a liaison with MWDOC, MET, California Water Efficiency Partnership (CalWEP), and others.

The City’s conservation coordinator’s duties include the following:
 Administer the contracts that the City has with MET and MWDOC regarding rebate programs.  Conduct surveys at the request of residential and business customers (or designate a staff member to do so).
 Coordinate with other agencies and public groups’ displays on conservation information and provide free water conservation materials to the public.  Monitor the recycled water program for the City.
 Administer the City’s education program using contractors or staff to educate children of City schools or other locations.

The City’s water conservation programs are funded by the water ratepayers. The conservation program efforts are factored into the City’s existing and future water rates as currently adopted.

9.1.7 Other Demand Management Measures (DMMs)

9.1.7.1 Residential Program
As a direct member of MET, residential DMMs are made available to City water users through the SoCal WaterSmart Program.to increase landscape and indoor water use efficiency for residential customers.

High Efficiency Clothes Washer Rebate Program
The High Efficiency Clothes Washer (HECW) Rebate Program provides residential customers with rebates for purchasing and installing HECWs that. Approximately 15% of home water use goes towards laundry, and HECWs use 35-50% less water than standard washer models, with savings of approximately 10,500 gallons per year, per device. Devices must meet or exceed the Consortium for Energy Efficiency (CEE) Tier 1 Standard, and a listing of qualified products can be found at socalwatersmart.com. There is a maximum of one rebate per home.

Premium High Efficiency Toilet Rebate Program
The largest amount of water used inside a home, 30%, goes toward flushing the toilet. The Premium High Efficiency Toilet (HET) Rebate Program offers incentives to residential customers for replacing their toilets using 1.6 gallons per flush or more. Premium HETs use just 1.1 gallons of water or less per flush, which is 20% less water than WaterSense standard toilets. In addition, Premium HETS save an average of 9 gallons of water per day while maintaining high performance standards.

City Council 27 – 132 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-12

9.1.7.2 Commercial, Industrial and Institutional (CII) Programs MET provides a variety of financial incentives to help City businesses, restaurants, institutions, hotels, hospitals, industrial facilities, and public sector sites achieve their efficiency goals. Water users in these sectors have options to choose from a standardized list of water efficient equipment/devices or may complete customized projects through a pay-for-performance where the incentive is proportional to the amount of water saved. Such projects include high efficiency commercial equipment installation and manufacturing process improvements.

Water Savings Incentive Program
The Water Savings Incentive Program (WSIP) is designed for non-residential customers to improve their water efficiency through upgraded equipment or services that do not qualify for standard rebates. WSIP is unique because it provides an incentive based on the amount of water customers actually save.

This “pay-for-performance” design lets customers implement custom projects for their sites.

Projects must save at least 10 million gallons of water to qualify for the Program and are offered from $195 to $390 per acre foot of water saved. Examples of successfully projects include but are not limited to changing industrial process system water, capturing condensation and using it to supplement cooling tower supply, and replacing water-using equipment with more efficient products.

On-site Retrofit Program
The On-site Retrofit Program provides another pay-for-performance financial incentive to commercial, industrial and institutional property owners, including Homeowner Associations, who convert potable water irrigation or industrial water systems to recycled water use.

Projects commonly include the conversion of mixed or dedicated irrigation meters using potable water to irrigate with reclaimed water, or convert industrial processes use to recycled water, such as a cooling towers. Financial incentives of up to $1,300 per AF of potable water saved are available for customer-side on the meter retrofits. Funding is provided by MET, USBR, and DWR.

Device Retrofits
The City offers financial incentives under the Socal Water$mart Rebate Program which offers rebates for various water efficient devices to CII customers.

9.1.7.3 Landscape Programs
One of the most active and exciting water use efficiency sectors MET provides services for are those programs that target the reduction of outdoor water use. With close to 60% of water consumed outdoors, this sector has been and will continue to be a focus for MET and the City.

Turf Removal Program
The Orange County Turf Removal Program offers incentives to remove turf grass from residential, commercial, and public properties throughout the County. This program is a partnership between MWDOC, MET, and local retail water agencies. The goals of this program are to increase water use efficiency through sustainable landscaping practices that result in multi-benefit projects across Orange County. Participants replace their turf grass with drought-tolerant, CA Friendly, or CA Native landscaping, City Council 27 – 133 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-13
and retrofit their irrigation systems to high efficiency equipment, such as drip, or remove it entirely, and are encouraged to utilize smart irrigation timers. Furthermore, projects are required to include a stormwater capture feature, such as a rain garden or dry stream bed, and have a minimum of three plants per 100 square feet to increase plant density and promote healthy soils. These projects save water and also reduce dry and wet weather runoff, increase urban biomass, and sequester more carbon than turf landscapes.

Smart Timer Rebate Program
Smart Timers are irrigation clocks that are either weather-based irrigation controllers (WBICs) or soil moisture sensor systems. WBICs adjust automatically to reflect changes in local weather and site-specific landscape needs, such as soil type, slopes, and plant material. When WBICs are programmed properly, turf and plants receive the proper amount of water throughout the year. During the fall months, when property owners and landscape professionals often overwater, Smart Timers can save significant amounts of water.

Rotating Nozzles Rebate Program
The Rotating Nozzle Rebate Program provides incentives to residential and commercial properties for the replacement of high-precipitation rate spray nozzles with low-precipitation rate multi-stream, multi-trajectory rotating nozzles. The rebate offered through this Program aims to offset the cost of the device and installation.

Socal Water$mart Rebate Program for Landscape
The City also offers financial incentives under the SoCal Water$mart Rebate Program for a variety of water efficient landscape devices, such as Central Computer Irrigation Controllers, large rotary nozzles, and in-stem flow regulators.

Landscape Training Classes
The California Friendly and Native Landscape Training and the Turf Removal and Garden Transformation Workshops provide education to residential homeowners, property managers, and professional landscape contractors on a variety of landscape water efficiency practices that they can employ and use to help design a beautiful garden using California Friendly and native plant landscaping principles.

The California Friendly and Native Landscape Class demonstrates how to: implement storm water capture features in the landscape; create a living soil sponge that holds water; treat rainwater by a resource; select and arrange plants to maximize biodiversity and minimize water use; and control irrigation to minimize water waste, runoff and non-point source pollution.

The Turf Removal and Garden Transformation Workshop teaches participants how to transform thirsty turfgrass into a beautiful, climate-appropriate water efficient garden. This class teaches how to: evaluate the landscape’s potential; plan for garden transformation; identify the type of turfgrass in the yard; remove grass without chemicals; build healthy, living soils; select climate-appropriate plants that minimize water use and maximize beauty and biodiversity; and implement a maintenance schedule to maintain the garden.

City Council 27 – 134 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-14
Implementation over the Past Five Years
During the past five years, FY 2015-16 to 2020-21, the City, with the assistance of MET, has continued water use efficiency programs for its residential, CII, and landscape customers as described in Table 9-3.

Implementation data is provided in Appendix I. The City will continue to implement all applicable programs in the next five years.

Table 9-3: City of Santa Ana Water Conservation Efficiency Program Participation Measure Metric FY15/16 FY16/17 FY17/18 FY18/19 FY19/20
Central Computer
Irrigation Controllers
computer controllers - - - - 9
Flow Restrictor restrictors 4 91 - - -
HECWs washers 260 197 151 149 96
HETs toilets 441 2 - 4 8
Rain Barrels barrels 177 40 9 3 7
Cisterns cisterns - - - - -
Premium HETs toilets 1,163 158 582 7 920
Rotating Nozzles nozzles 208 2,356 - - 64
CII WBICs clocks 26 3 - 20 120
Residential WBICs clocks 22 16 32 25 22
Zero Water Urinals urinals - - - - -
Plumbing Flow
Control
valves - - - - -
City Council 27 – 135 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-15
Measure Metric FY15/16 FY16/17 FY17/18 FY18/19 FY19/20
Soil Moisture Sensor controllers - - - - -
Ice-Making Machine machines - 4 - - -
Ultra Low Water
Urinal
urinals - 3 - - -
Turf sf 368,012 197,651 720 1,700 6,775
Spray-to-Drip sf
Not
eligible
WSIP projects 1 0 0 0 0
Recycled Water projects; sf irrigated
Large Landscape
Survey
surveys 1
Water Use Objectives (Future Requirements)
To support Orange County retailers with SB 606 and AB 1668 compliance (Conservation Framework), MET provides support to members agencies to ensure they meet the primary goals of the legislation including to Use Water More Wisely and to Eliminate Water Waste. Beginning in 2023, Urban water suppliers are required to calculate and report their annual urban water use objective (WUO), submit validated water audits annually, and to implement and report BMP CII performance measures.

City Council 27 – 136 5/16/2023
Santa Ana 2020 Urban Water Management Plan
arcadis.com
9-16
Urban Water Use Objective
An Urban Water Supplier’s urban WUO is based on efficient water use of the following:
 Aggregate estimated efficient indoor residential water use;  Aggregate estimated efficient outdoor residential water use;  Aggregate estimated efficient outdoor irrigation landscape areas with dedicated irrigation meters or equivalent technology in connection with CII water use;  Aggregate estimated efficient water losses;
 Aggregate estimated water use for variances approved the State Water Board;  Allowable potable reuse water bonus incentive adjustments.