FOR: Water Subcommittee Meeting [January 24, 2024]
TO: Honorable Water Subcommittee Members
APPROVAL: Stephen Dopudja, P.E., Interim Utilities Manager
Toyasha Sebbag, Assistant to the City Manager
Rolf Ohlemitz, Rialto Water Services, General Manager
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Request that the Water Subcommittee provide feedback on the City Council and Rialto Utility Authority Board entering into a not-to-exceed contract in the amount of $164,650 for 120Water to provide services in compliance with Federal Environmental Protection Agency’s Lead and Copper Rule Revisions.
(ACTION)
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BACKGROUND:
The Federal Environmental Protection Agency (EPA) published the Lead & Copper Rule Revisions (LCRR) to better protect communities from exposure to lead in drinking water and created new and revised obligations for community water systems. The LCRR requires systems to develop and submit (1) a comprehensive inventory of all service lines in their distribution system and (2) a replacement plan for any distribution system with unknown, lead, or galvanized service lines. Establishing an inventory of service line materials and identifying the location of any lead service lines is a key step in getting them replaced and protecting public health. The service line inventory, which includes both customer-owned and utility-owned portions of the service line, is the first step to eventually proving and certifying that our system is free of lead service lines. California utilities must build upon their utility service line inventories by characterizing customer-side service line material and submitting an updated combined inventory that adheres to the specifications of the EPA and Division of Drinking Water (DDW) by October 16, 2024.
ANALYSIS/DISCUSSION
On September 27, 2023, the Water Subcommittee heard a presentation from Rolf Ohlemitz, Rialto Water Services, General Manager about recommended actions for the Rialto Utility Authority (RUA) to comply with the LCRR by October 16, 2024. The recommendation was to enter into a contract with 120Water for $164,650 to complete the inventory.
Subsequently, on November 21, 2024, the Utilities Commission heard a similar presentation from Sohiel Sadighi, Veolia North American's, General Manager, asking for authorization to place the item on the agenda for City Council consideration. The Utilities Commission unanimously voted to move the item forward to the City Council for approval.
Before placement of this item on the City Council Agenda, staff wanted to return to the Water Subcommittee to answer the following questions raised by the Water Subcommittee at its September 27, 2023, meeting. In addition, the initial contract amount requested of $$205,081.96 has been corrected to $164,650 due to a calculation error.
Please see responses in bold to questions 1 - 10 below:
1. Are there lead pipes within our jurisdiction? If so, could you provide information on their locations?
No. The Rialto Utility Authority does not have any lead pipes in our system.
2. When conducting water sampling, is there evidence of lead contamination in the samples?
No. In compliance with the California Water Board’s Lead and Cooper Rule, RWS routinely samples for lead in our system, and lead concentrations have not exceeded 15 parts per billion nor have copper concentrations exceeded 1.3 parts per million in more than 10% of customer taps sampled.
3. In the event that lead is identified on the customer's side, who assumes liability for the replacement of pipes?
This is still influx and has not been finalized yet. The EPA stated this will be finalized and determined by or before 10/16/24.
4. Regarding the deadline for completing the inventory by 10/16/24, does this include schools, and if so, who will be responsible for repairs if they indicate financial constraints? Will the City take on the responsibility of seeking funding for them?
Yes, the deadline includes schools. As the LCRR is written, schools are responsible for replacing their lead service lines and will be responsible for seeking funding for themselves.
5. What is the anticipated cost associated with creating the inventory due on 10/16/24?
$165K. Staff is proposing to use 120water to provide (1) a comprehensive inventory of all service lines in RUA’s distribution system and (2) a replacement plan for any distribution system with unknown, lead, or galvanized service lines.
6. Mayor Robertson mentioned the possibility of funding. Could you please confirm the availability of funding for this initiative?
There is no funding for the inventory that is due on October 16, 2024. However, there will be funding available for the replacement requirements (i.e., Biden Infrastructure).
7. If an inspection of a resident's property reveals galvanized pipes, will it be assumed that lead is present in those pipes?
No.
8. How was the solicitation for vendors conducted, and were local vendors specifically invited to participate?
Veolia/RWS sought out various vendors, presentations were provided, and 3 quotes were obtained. Local vendors were not solicited because RWS/Veolia was unable to locate any local vendors that could facilitate the specialized work associated with the LCRR.
9. Under the Concession Agreement, is the responsibility for compliance with the Lead and Copper Rule vested in the City/RUA or RWS?
This is a “Change in Law” activity and is outside the scope of the Concession Agreement. Therefore, it is the City/RUA's responsibility.
10. Can you provide information on the actions taken by other agencies in response to the Lead and Copper Rule revisions?
Performing in-house
• Redlands, City of
• West Valley Water District (WVWD)
Agencies Outsourcing
• Colton, City of
• Corona, City of
• Fontana Water Company - initially, performing in-house, however, have encountered roadblocks, and have engaged 3rd party contractors/consultants for assistance.
• Garden Grove, City of - utilizing 120Water
RWS/Veolia confirmed that updates to the inventory after the 10/16/24 deadline are fluid: municipalities can continue to update their inventory even after the deadline. RWS/Veolia advised that this is very beneficial as municipalities can continue investigating/verifying lines to ensure any replacement activities under LCRI (10 years to replace all unknowns after the LCRR deadline) are confirmed and substantiated.
FINANCIAL IMPACT
The financial framework employed by 120Water adheres to a conventional subscription-based model. An annual subscription fee, set at a fixed rate, recurs yearly and grants access to the comprehensive 120Water platform and the dedicated services team. The program is designed to institute a consistent communication schedule with the designated City of Rialto team to steer the program toward successful outcomes. The ensuing table delineates the anticipated annual rates tailored to fulfill the specified program requirements and unit rates for elements where precise quantities remain undetermined. It is imperative to highlight that a collaborative discussion transpired between the involved parties and DDW, during which the unique needs and prerequisites of the City of Rialto were thoroughly deliberated and formalized. After this discussion and DDW validation, the estimates presented in the pricing proposal have been meticulously adjusted to align seamlessly with the operational nuances of the City of Rialto's system.


Budget Impact
The proposed action will not impact the Capital Improvement Budget. Funds are available in Contract Services Account No. 680-500-7960-2011.
RECOMMENDATION:
Request that the Water Subcommittee provide feedback on the City Council and Rialto Utility Authority Board entering into a not-to-exceed contract in the amount of $164,650 for 120Water to provide services in compliance with Federal Environmental Protection Agency’s Lead and Copper Rule Revisions.