For City Council Meeting March 12, 2024
TO: Honorable Mayor and City Council
FROM: David N. Carmany
AUTHOR(S): Stephen Dopudja, P.E., Interim Utilities Manager
Toyasha Sebbag, Assistant to the City Manager
...Title
Consideration of a contract with 120Water, Inc. in the amount of $164,650 for professional services to facilitate compliance with the Federal Environmental Protection Agency’s Lead and Copper Rule Regulations.
RECOMMENDATION:
It is recommended that the City Council and Rialto Utility Authority Board:
1. Award a contract to meet the City’s compliance with the Federal Environmental Protection Agency’s Lead and Copper Rule Revisions to 120Water, Inc.; and
2. Authorize the City Manager to execute a Professional Services Agreement with 120Water, Inc. for a not-to-exceed amount of $164,650.
(ACTION)
...Body
BACKGROUND
In 1991, the U.S. Environmental Protection Agency (EPA) introduced a regulation aimed at controlling lead and copper levels in drinking water, known as the Lead and Copper Rule (LCR). Since its inception, the LCR has undergone revisions to align with technological and scientific advances in lead and copper detection and treatment. The City of Rialto has remained in compliance with the LCR, with lead levels not detected in the water system in over ten years and our water system treated with chlorine to reduce copper corrosion. However, motivated in part by the lead water contamination in Flint, Michigan, when almost 100,000 residents were exposed to lead poisoning from April 2014 to October 2015, in 2021, the EPA issued an addendum to the LCR known as the Lead and Copper Rule Revisions (LCRR). These revisions were designed to enhance protections for communities against lead exposure in drinking water and impose new obligations on community water systems like the City of Rialto.
Under the LCRR (ATTACHMENT 1), water systems are mandated to develop and submit two key components: (1) a comprehensive inventory detailing all service lines within their water distribution system and (2) a replacement plan for any distribution system pipelines identified from the comprehensive inventory to contain unknown, lead, or galvanized service lines.
Creating an inventory of service line materials is important for their replacement and safeguarding public health. This inventory encompasses both customer-owned and utility-owned segments of the service line. It serves as an initial step toward demonstrating and certifying the absence of lead service lines within Rialto's water system. California utilities are required to augment their utility service line inventories by characterizing customer-side service line materials and submitting an updated comprehensive inventory that aligns with the specifications outlined by the EPA and the California Division of Drinking Water (DDW) by October 16, 2024.
On November 30, 2023, the EPA announced the proposed Lead and Copper Rule Improvements (LCRI) to achieve 100% lead service line replacement nationwide within 10 years, focusing on future funding for water systems (ATTACHMENT 2). Under the proposed LCRI, all water systems would be required to regularly update their inventories, create a service line replacement plan, and identify the materials of all service lines of unknown materials. Although not yet finalized, it is another first step for the City of Rialto/RUA in securing future funding should the inventory identify customer-owned lead service lines that need replacement. The proposed LCRI is anticipated to be finalized in fall 2024.
ANALYSIS/DISCUSSION
On September 27, 2023, the Water Subcommittee heard a presentation from Rolf Ohlemutz, Rialto Water Services (RWS), General Manager about recommended actions for the Rialto Utility Authority (RUA) to comply with the LCRR.
Subsequently, on November 21, 2023, 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 consideration to award a contract to 120Water, Inc. for $164,650 to complete the lead and copper service line inventory.
Before placement of this item on the City Council Agenda, staff returned to the Water Subcommittee on January 24 and February 22, 2024, to answer questions raised by the Water Subcommittee at its September 27, 2023 (ATTACHMENT 3), meeting and to allow for the city attorney to review the proposed contract submitted by 120Water, Inc.
RWS/Veolia confirmed that updates to the inventory after the October 16, 2024, deadline are fluid: water systems can continue to update their inventory even after the deadline. RWS/Veolia advised that this is very beneficial as water systems can continue investigating and verifying lines to ensure any replacement activities under LCRI (10 years to replace all unknowns after the LCRR deadline) are confirmed and substantiated.
ENVIRONMENTAL IMPACT
Pursuant to Section 15378 of the California Environmental Quality Act, the proposed request is not a project. A ‘Project’ means the whole of an action, which has a potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. A project does not include the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific project, which may result in a potentially significant physical impact on the environment or Organizational, or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney’s Office has reviewed the agreement and approved it as to form.
FINANCIAL IMPACT
The financial framework employed by 120Water, Inc. 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, Inc. platform and the dedicated services team. The program is designed to institute a consistent communication schedule with a designated City of Rialto/RUA team to steer the program toward successful outcomes. The Professional Services Agreement contract costs delineate the anticipated annual rates tailored to fulfill the specified program requirements and unit rates for elements where precise quantities remain undetermined.
The tables referenced below and in ATTACHMENT 5 detail the cost requirements.
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/RUA 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/RUA’s water distribution system. The contract is anticipated to be completed on or about October 16, 2024, to submit the initial lead and copper service line inventory to the EPA. The subscription service will end one year after the contract is executed to allow a web-based platform for staff to interface with the results and to provide subsequent reporting to interested parties, such as residents. However, should a contract amendment or extension be necessary, staff will return to the City Council/Rialto Utility Authority Board for authorization.
Staff is looking into options for providing lead and copper sampling services for a broader testing program.
Budget Impact
Operating Budget: Funds are available in Contract Services Account No. 680-500-7960-2011.
Capital Budget: The proposed action will not impact the Capital Improvement Budget.