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HomeMy WebLinkAbout08 - Application for the WaterSMART: Water and Energy Efficiency Grant for 2018PaR m CITY OF �\`S NEWPORT BEACH cy<`o-P City Council Staff Report May 22, 2018 Agenda Item No. 8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Steffen Catron, Acting Municipal Operations Director - 949-644- 3011, scatron@newportbeachca.gov PREPARED BY: Joshua Rosenbaum, Senior Management Analyst, jrosenbaum@newportbeachca.gov PHONE: 949-644-3057 TITLE: Resolution Authorizing the Submittal of an Application for the WaterSMART: Water and Energy Efficiency Grant for 2018 ABSTRACT: The Municipal Operations Department — Utilities submitted a grant application with the Federal Bureau of Reclamation WaterSMART: Water and Energy Efficiency Grant Program for 2018 to support the Advanced Meter Infrastructure (AMI) Project. A supporting resolution by the City Council is required to complete the City's grant application. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2018-29, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Submittal of an Application for the WaterSMART: Water and Energy Efficiency Grant for 2018 for the City's Advanced Meter Infrastructure Solution Project. FUNDING REQUIREMENTS: The proposed FY2018-19 Capital Improvement Program (CIP) budget includes the multi- year Advanced Meter Infrastructure (AMI) project with an initial appropriation of $3.3 million funded by the reserve fund balance of the Water Fund. The project would be budgeted over three fiscal years with a similar $3 million appropriation each year. The Municipal Operations Department is seeking $1 million in Federal grant funds to offset the City's net costs on the AMI project. The total project cost is an estimated $9.2 million. 8-1 Resolution Authorizing the Submittal of an Application for the WaterSMART: Water and Energy Efficiency Grant for 2018 May 22, 2018 Page 2 DISCUSSION: During the City Council study session on November 28, 2017, the Municipal Operations Department (MOD) presented a comprehensive overview of the proposed Advanced Metering Infrastructure (AMI) project. With the general support of the City Council for this beneficial project, MOD staff moved forward with the selected vendor and began the process of drafting a contract agreement for the AMI project. The contract is currently under review by the City Attorney's office and once finalized by both the City and the vendor, it will be brought forward to City Council for your consideration. Since the study session, MOD staff retained a professional grant writer to assist the staff in preparing and writing grant applications to obtain State and Federal grants for water - related projects. The grant -writing consultant has extensive experience and knowledge with available Federal and State granting programs; and has been successful in securing similar water -related grant awards for local jurisdictions. On March 19, 2018, the Federal Bureau of Reclamation released funding opportunities for fiscal year 2018, including one for Water and Energy Efficiency Projects as part of the Department of Interior's WaterSMART program initiative. The Water and Energy Efficiency Grant is awarded to projects that result in quantifiable water savings and those which support broader water reliability benefits. The grant program lists municipal metering projects that install meters resulting in measurable water savings, such as our proposed AMI project, as an eligible project. Applicants must be capable of cost sharing 50 percent or more of the total project costs. The City of Newport Beach is eligible to apply for this grant as a water delivery authority in the Western United States. The grant required all applicants to submit their Water and Energy Efficiency grant by May 10, 2018. With the assistance of the professional grant -writing firm, the City submitted the grant application (included with staff report as Attachment B) on May 9, 2018 and pursued the maximum $1 million in grant funds from the Water and Energy Efficiency program for the AMI project. One component of the grant application is to provide a supporting resolution from the City Council within 30 days of the application submittal. Upon adoption of the Resolution, the City will forward it to the Bureau of Reclamation to complete the application package. Federal funding for this grant program is expected to be awarded in the fall of 2018. Project awards will be made through grants or cooperative agreements as applicable to each project. Should the City be awarded grant funds, the City has three years to complete the AMI project. This three-year timeline mirrors MOD's proposed three-year phased -in approach of completing this project over multiple Capital Improvement Program fiscal year budgets. 8-2 Resolution Authorizing the Submittal of an Application for the WaterSMART: Water and Energy Efficiency Grant for 2018 May 22, 2018 Page 3 ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Resolution No. 2018-29 Attachment B — Grant Application for the Water and Energy Efficiency Grant Program 8-3 ATTACHMENT A RESOLUTION NO. 2018- 29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR THE WATERSMART: WATER AND ENERGY EFFICIENCY GRANT FOR 2018 FOR THE CITY'S ADVANCED METER INFRASTRUCTURE SOLUTION PROJECT WHEREAS, the United States Bureau of Reclamation is currently offering grant opportunities through the WaterSMART: Water and Energy Efficiency Grants for Fiscal Year ("FY") 2018 program; WHEREAS, the WaterSMART: Water and Energy Efficiency Grants for FY 2018 program is a cost -shared grant program emphasizing water and energy efficiency; WHEREAS, the City Council supports the submission by the City of Newport Beach ("City") of a grant application, prepared and approved by the City, to the WaterSMART: Water and Energy Efficiency Grants for FY 2018 program, for the City's Advanced Meter Infrastructure Solution Project ("Project"); WHEREAS, under the WaterSMART: Water and Energy Efficiency Grants for FY 2018 program, the United States Bureau of Reclamation may award up to One Million Dollars and 00/100 ($1,000,000.00) towards the maximum 50/50 cost sharing to pay for the Project costs and the City is capable of providing an additional Eight Million One Hundred Eighty -Eight Thousand Nine Dollars and 00/100 ($8,188,009.00) in cash and/or in-kind contributions specified in the grant application's funding plan to pay for all remaining Project costs; and WHEREAS, if selected to receive funds for the WaterSMART: Water and Energy Efficiency Grants for FY 2018 program, the City will work with the United States Bureau of Reclamation to meet established deadlines for entering into a cooperative agreement regarding funding for the Project. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby approve the submission of the application for the WaterSMART: Water and Energy Efficiency Grants for FY 2018 program by the City for fiscal year 2018-19 for the Advanced Meter Infrastructure Solution Project. Section 2: In the event grant funding is provided by the United States Bureau of Reclamation, the City Council does hereby authorize the City Manager or his or her designee to accept the grant and sign any contract for administration of the grant funds. The City Council does hereby delegate the City's Finance Department Director to act as a fiscal agent for any grant funding received. Resolution No. 2018 - Page 2 of 2 Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 5: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 22na day of May, 2018. Marshall "Duffy" Duffield Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron C. Harp City Attorney S-5 ATTACHMENT B Advanced Metering Infrastructure Implementation Program Phase 2 Project Grant Applicant: U City of Newport Beach 949 West 16th Street, Newport Beach, California 92663 Project Manager: Steffen Catron Acting Utilities Director Municipal Operations Department Email: SCatron@newportbeachca.gov Phone: 949-718-3402 Submittal Date: May 10, 2018 Submitted to: U.S. Department of the Interior, Bureau of Reclamation's WaterSMART: Water and Energy Efficiency Grants for Fiscal Year 2018 :. Table of Contents Mandatory Federal Forms 3 Technical Proposal and Evaluation Criteria 3 Executive Summary 3 Project Location 11 Technical Project Description 11 Evaluation Criteria 17 Evaluation Criterion A: Quantifiable Water Savings (30 points) 17 Evaluation Criterion B: Water Supply Reliability (18 points) 22 Evaluation Criterion C: Implementing Hydropower (18 points) 31 Evaluation Criterion D: Complementing On -Farm Irrigation Improvements (10 points) 31 Evaluation Criterion E: Department of the Interior Priorities (10 points) 32 Evaluation Criterion F: Implementation and Results (6 points) 36 Subcriterion No. F.1—Project Planning 36 Subcriterion No. F.2—Performance Measures 37 Evaluation Criterion G: Nexus to Reclamation Project Activities (4 points) 39 Evaluation Criterion H: Additional Non -Federal Funding (4 points) 40 Project Budget 40 Funding Plan 41 Budget Proposal 41 Budget Narrative 41 Budget Form – SF -424C, Budget Information – Construction 47 Environmental and Cultural Resources Compliance 47 Required Permits or Approvals 49 Letters of Support 49 Official Resolution 49 Exhibits 49 Exhibit A – Maps and Mueller Systems Cost Proposal 49 Exhibit B – Letters of Support 49 Exhibit C – Resolution 49 8-7 Mandatory Federal Forms The following forms were submitted electronically via grants.gov: SF -424 Application for Federal Assistance, SF - 424C Budget Information — Construction Programs, and SF -424D Assurances — Construction Programs. Technical Proposal and Evaluation Criteria Executive Summary May 10, 2018 Mr. Steffen Catron, Project Manager City of Newport Beach Newport Beach, Orange County, California The City of Newport Beach Municipal Operations Department (City) is proposing the Advanced Metering Infrastructure (AMI) Implementation Program Phase 2 (Project) as part of its long-term goal of water supply reliability and efficient water management. The Phase 2 AMI Project includes the upgrade of 26,309 existing meters (including 25,467 manually -read meters and 842 Automatic Meter Reading (AMR) vehicle drive-by read meters) with an AMI fixed -base network system that will automatically collect and store hourly consumption data, aiding in water conservation and water use efficiency, improved water management, and energy savings. Funding would be used to accomplish the following Phase 2 AMI Project activities: 1) Environmental compliance; 2) Equipment procurement (Mueller Systems' Mi.Net AMI system); 3) Upgrade to an AMI fixed -based network including water meters, AMI radio transmitters, collectors, and software that will automatically collect and store hourly consumption data; 4) Integrate Mi.Host Software with the City's MUNIS Customer Information System (CIS) Interface Software from Tyler Technologies (CIS and Billing Software) that will provide a billing interface, web -based consumer portal for use by the City and its customers; and 5) Community outreach and customer communication. The AMI Project will allow the City to implement a full distribution system with AMI to provide hourly water usage information and highwater usage and leak alerts that can be provided to customers. With the availability of actual water data, the City would monitor the effectiveness of AMI Implementation through a before and after analysis of the data. The Phase 2 AMI Project builds upon the success of the current pilot program and will follow an initial implementation phase (Phase 1). Phase 1 will upgrade 250 meters, while the Phase 2 AMI Project will upgrade the remaining 26,309 meters. Phase 2 of the AMI Implementation Program would expand the program to include all 26,559 potable and recycled water accounts to include Mueller Systems' Mi.Net AMI System. This grant application is to fund implementation of Phase 2 only (not Phase 1). Phase 2 will result in quantifiable and sustainable water savings of 1,569.61 acre-feet per year (AFY). Deployment of the software, a Customer Portal, will allow water users with online access to their own real-time hourly water usage data. This will prompt City customers to make positive changes to their water use behaviors. The proposed AMI Project will reduce real system losses and increase water use efficiency and conservation through the availability of near real-time data on water usage and daily water needs, resulting in improved water management. The City is dependent on imported water for 25 percent of its potable water demands, and conservation and water use efficiency are key factors for improving water sustainability within the region. The City receives surface water imported by the Metropolitan Water District of Southern California (MWD) through the Municipal Water District of Orange County (MWDOC). MWD's imported water sources are the Colorado River Aqueduct (CRA) and the State Water Project (SWP), which draws water from the San Francisco -San Joaquin Bay Delta. The City's customers are committed to and have been successful in maximizing water conservation. The AMI Project will expand upon the City's efforts to promote water use efficiency by accomplishing the following: 1) More rapid identification and correction of water leaks (currently meters are read every month allowing leaks to go undetected and water to be wasted for a month before being noticed), 2) More accurate meter readings compared to aging meters (many of the City's meters are at replacement age and are likely erroneously registering lower water use than actual water use), and 3) Reduced potable water usage based on customer education through the AMI Project's data on water usage. The City strives to be an example of water use efficiency and water conservation for other City's that are heavily :: dependent on imported water supplies. With the current drought conditions and decreased reliability of imported water supply, conservation and water use efficiency are critical for improving water sustainability within the service area. Following the anticipated fall 2018 Funding Award, the AMI Project will begin immediately and be completed by August 1, 2021, within the 3 -year timeframe, as shown in the schedule below: Project Schedule with Dates Project Schedule by Task Start Date End Date Funding Award (estimated date) 9/30/18 9/30/18 Project Management and Reporting 9/30/18 9/1//21 Environmental Review 9/30/18 11/1/18 Procurement and Installation of AMI System 11/1/18 11/1/19 Meter Equipment Procurement 11/1/18 4/1/19 Installation of AMI Meters 2/1/19 8/1/21 Final Implementation 1/2/19 8/1/21 The AMI Project is not located on a Federal facility. Background Data Sources of Supply and Water Rights The City's main sources of water supply are a combination of local groundwater, imported water, and recycled water. In FY 2016-17, the City relied on approximately 72 percent local groundwater water, 25 percent imported water, and 3 percent recycled water. The City's 2015 Urban Water Management Plan projects through 2040, local groundwater will be maintained at 70 percent of supply, imported water will increase slightly to 26.5 percent, and recycled water will increase slightly to 3.5 percent as the composition of the City's water supply, as shown in Table 4 below. The City works with these three primary agencies, MWD, MWDOC, and Orange County Water District (OCWD), to ensure a safe and reliable water supply that will continue to serve the community in periods of drought and shortage. Groundwater is produced from local groundwater wells managed by OCWD. Imported water is purchased from MWDOC, the regional wholesale water suppliers of Orange County, who in turn purchases water imported from SWP and the Colorado River through MWD and delivered through MWDOC. Recycled water is purchased from OCWD. The City's location within MWDOC is shown on Figure 1, and its location within the OCWD's service area is shown on Figure 4. A good portion of the City's water supply is groundwater pumped from four wells within the City of Fountain Valley. Pumped groundwater travels through more than six miles of the 30 -inch Groundwater Transmission Main traversing the cities of Fountain Valley, Huntington Beach, and Costa Mesa. In addition, a pump station, a treatment facility, and a three -million -gallon (MG) reservoir assist in the transmission and treatment effort. The City meets up to 75 percent of its demand through groundwater from the Orange County Water Basin (OC Basin), under regulations of OCWD's Basin Production Percentage (BPP). 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. Groundwater levels are managed within a safe basin operating range to protect the long-term sustainability i • 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 (OCWD, Groundwater Management Plan 2015 Update, June 2015). Figure 1. MWDOC Service Area and the City of Newport Beach Location Lax Argeks C>..*, Sarr 9na�r¢Vn Cmnry oRE: FJ'-54TQV +'OR& -0 LAVAd ihHL7ER L�fSTRA"i CICLCEh' ZW& LA ♦ MdA WAMRCv SIJEf:A PARK ANArHM db Rln WATER GCLCEh' ZWE WdTER C6 � Rwr ORANGE EPC .e Oi.RCEAf QRO4+E WFSTI.iASTf RI 12 TVS7AN E7ATE IWA EGAON WATER Wd EANTAANA dh f CdiT7NOMNSSSCF.' FD'1NTAAN VALLEY RUANERANCH MESA WA7FR DfST. rVAM F E fSTF GT -P CAMIDN 1 WA7SR )JEWFaR7&EA CIi EL MY201 WA LAOU SEAC.4 � SCO YWA7E MUULrCWMGUa SAroAiARGARnA WATEROFST17 r WA7ER OASTFICT EWERALO JJAY wR4TCE CP57RACT L43 NiAHERCH QuUw7YMA7ER Vir SAN JUAN aAP.'STRA.4C East Orange County Water District (Ahdesale) Freeways and TdIways Orange County Water district SOuthCaast_WD_NRWA MWDOC Retail Agencies Nan-RetaiI Agency Boundary SOUTH OOAST WATER CV, WO M E S MWDOC Service Area and Member Agencies 10 San Cxpo r-17 8-10 Figure 2. OCWD Service Area and the City of Newport Beach The OC Basin is not adjudicated and, as such, pumping from the 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 i percentage of each Producer's total water supply that comes from groundwater B pumped from the OC Basin." ; Groundwater production at or below the BPP is assessed a 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 w.. ,.�a,Awur��ar the BPP. Agencies that pump , "'"} MOM above the BPP are charged i �+ i pnearr �a the RA plus the Basin Equity =� a• _ °* Assessment (BEA), which is calculated so that the cost of groundwater production is greater than MWDOC's full service rate for imported water. The BEA can be increased to discourage production above the BPP. The BPP is set uniformly for all Producers by OCWD on an annual basis. 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) Groundwater Replenishment System supplies, and 5) other supplies, such as imported water and recycled water purchased for the Alamitos Seawater Barrier. The BPP is a major factor in determining the cost of groundwater production from the OC Basin for that year. In some cases, OCWD encourages treating and pumping 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 clean up and contain the spread of poor -quality water. 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. When OCWD authorizes a BEA exemption for a project, it is obligated to provide the replenishment water for the production above the BPP and forgoes the BEA revenue that OCWD would otherwise receive from the Producer (OCWD, Groundwater Management Plan 2015 Update, June 2015). In 2017, the City supplemented its local groundwater with 3,315 AFY of imported water purchased wholesale from MWD through MWDOC. Imported water represents approximately 25 percent of the City's total current water supply. MWD's current principal sources of water are the Colorado River via the CRA and the Lake Oroville watershed in 8-11 northern California through the SWP. The water obtained from these sources is treated at the Robert B. Diemer Filtration Plant located north of Yorba Linda. Typically, the Diemer Filtration Plant receives a blend of Colorado River water from Lake Mathews through the MWD Lower Feeder and SWP water through the Yorba Linda Feeder. The City currently maintains six connections to the MWD system along the Orange County Feeder and the East Orange County Feeder No. 2 with a total available capacity of 104 cubic feet per second (cfs), or 67 million gallons per day (MGD). The City's existing recycled water distribution system provides its large irrigation customers with supplemental water for irrigation purposes. The City purchases between 300 and 800 AFY of recycled water from OCWD through the Green Acres Project. The City owns and operates two site-specific recycled water pump stations for Big Canyon Country Club and the Newport Beach Country Club. In addition to these two sites, there are 15 recycled water connections with five customers, as well as median strips and two City -owned parks using water from the Green Acres Project. Water Supply and Demand In fiscal year 2017, the total water demand for the City was approximately 13,810 acre-feet (AF), as shown in the Table below. In 2017, the City served a population of 66,883 within an area of 35.77 square miles through 26,520 service connections. The City's potable demand was met through 10,003 AF of groundwater and 3,315 AF of imported water; the remaining non -potable demand was met through recycled water. The City is projecting over five percent increase in total potable and non -potable demand in the next 25 years accompanied by a projected 13 percent population growth [2015 UWMP, p. i] and factoring in its active efforts in promoting water conservation and water use efficiency to residents. Table 1 below summarizes the City's actual water supplies for FY 2016-17. Table 1. The City's Actual Water Supplies Retail: Water Supplies SupplyWater • Actual Volume Water Quality Imported Water MWDOC 3,315 Drinking Water Recycled Water OCWD 492 Drinking Water Groundwater Orange County Groundwater Basin 10,003 Drinking Water Total 13,810 Source: 2015 City of Newport Beach Urban Water Management Plan (UWMP), Table 3-3, p. 3-13 and City staff based on best available data received via email 4/17/18. Current Water Uses In FY 2016-17, there were 26,520 current customer active and inactive service connections in the City's potable water distribution system with all existing connections metered. Note that the AMI Project proposes upgrading a total of 26,309 meters for FY2017-18 because 27 additional potable meters were installed in the City's system in the past year. Approximately 57 percent of the City's potable water demand is residential (single/multi-family); commercial/industrial/institutional accounts for 17 percent, and dedicated landscape accounts for 21 percent of the potable water demand. Non-residential potable water demands include commercial and dedicated landscape use. The City has a mix of commercial uses (markets, restaurants, etc.), public entities (schools, fire stations and government offices), office complexes that account for 20 percent of total potable demand. Dedicated landscape for public park facilities and a golf course accounts for 20 percent of total potable demand [2015 UWMP, 2.3.1-2, pp. 2-34]. The City is a tourist destination, which creates demand fluctuations, primarily during the summer months, for commercial sector accounts. Non -revenue water volume consists of unbilled authorized consumption (e.g. hydrant 8-12 flushing, firefighting, and blow -off water from well start-ups), real losses (e.g. leakage in mains and service lines, and storage tank overflows), and apparent losses (unauthorized consumption, customer metering inaccuracies and systematic data handling errors). Based on the American Water Works Association (AWWA) water -loss audit conducted for the City, water losses were 855 AF and non -revenue water volume accounted for 6.5 percent of the City's water supplies in 2015. Number of Water Users Served The City's service area includes residential, commercial/industrial/institutional, and dedicated landscape customers. Growth has increased slightly since the 2010 UWMP as housing is becoming denser and new residential units are multi -storied. The City had a 2015 population of 66,219 according to the California State University at Fullerton's Center for Demographic Research (CDR). The City's population is projected to increase by 12.5 percent by 2040, representing an average growth rate of 0.5 percent per year [according to CDR and the Department of Finance (DOF)]. The influx of tourists during the summer months creates higher demands within the City especially at the beach facilities, hotels, and restaurants. Table 2 shows the population projections in five-year increments out to 2040 within the City's service area [2015 UWMP, 2.2.2 Demographics, p. 2-2]. Table 2: Population - Current and P Population Served 1 2015 2020 2025 2030 2035 2040 66,219 67,874 69,571 71,311 73,093 74,921 NOTES: Center for Demographic Research, California State University, Fullerton 2015 Current and Projected Water Demand The City's 2017 potable water demand was 13,318 AFY, met through locally extracted groundwater and purchased imported water from MWDOC. Table 3 includes actual and projected demands for the City's service area for the next 25 years. Table 3: Demands for Potable and Raw Water - Actual and Projected (AF) Demands Use Type PotableRetail: for Actual Water Projected Water Use 2017 2020 Use 2025 2030 2035 2040 Single Family 5,806 6,332 6,808 6,850 6,842 6,846 Multi -Family 1,727 1,953 2,100 2,112 2,110 2,111 Commercial 2,717 3,017 3,244 3,264 3,260 3,262 Landscape 2,329 2,989 3,214 3,233 3,230 3,231 Other 93 103 110 111 111 111 Losses 646 746 803 808 807 807 TOTAL 13,318 15,140 16,278 16,378 16,359 16,368 NOTES: Data retrieved from MWDOC Customer Class Usage and Retail Water Agenc Potential Shortfalls in Supply Although all of California has been experiencing extreme drought and water use efficiency and conservation continues, the City does not anticipate a shortfall in supply to meet demands. A comparison between the projected demands in Table 3 above and the projected supplies in Table 4 below show there will be adequate supply. However, the current drought and anticipated future drought conditions make imported water supplies unreliable with looming shortfalls in imported water supply. 8-13 Table 4. Projected Water Supplies Water Delivery System The City is 70 percent dependent on groundwater; the remaining 30 percent of its demand is met with imported and recycled water. MWDOC provides imported water to the City from MWD. Most of MWD's imported water supply is provided through the SWP and CRA and is treated at the Diemer and Weymouth plants. All of the water supplied by the City is sold to its retail customers (residential and commercial). The City maintains its own retail distribution system. The City delivers potable water through its water system, which consists of approximately 299 miles of pipelines ranging in size from four -inch to 30 -inch with various pipe materials. The City's extensive distribution system includes five pressure zones and six connections along the Orange County Feeder and the East Orange County Feeder No. 2. The total available capacity is 104 cubic feet per second (cfs). The City has five pump stations that deliver water to the upper zones; backup generation facilities ensure that the City can still deliver water to all zones during a rolling blackout. Groundwater Facilities The City receives a large percentage of its supply from groundwater. Groundwater is pumped from four wells within the City of Fountain Valley and travels through more than six miles of the 30 -inch Groundwater Transmission Main in the cities of Fountain Valley, Huntington Beach, and Costa Mesa. In addition, a pump station, a treatment facility, and a three -million -gallon (MG) reservoir assist in the transmission and treatment effort. The City meets up to 75 percent of its demand through groundwater, under regulations of OCWD's BPP. Recycled Water Facilities The City has no capability of treating water to produce recycled water, but through an agreement with OCWD, the City purchases between 300 and 800 AFY of recycled water for some large irrigation users. OCWD provides water through the Green Acres Project, which has the capability to deliver up to 1,000 AFY. The City began serving recycled water in 1999 and currently has approximately ten miles of recycled water distribution pipe that supplies 12 sites. The City has investigated future sites or locations for recycled water, but there are limitations to the availability of recycled connections. The City is looking into the possibility of inter -district recycled water transfers to provide recycled water to some associations and recreation facilities. The City is in the process of expanding its recycled 8-14 777 -�• 1 M - 2020 2025 2030 2035 2040 Reasonably Reasonably Reasonably Reasonably Reasonably Available Available Available Available Available Volume Volume Volume Volume Volume Groundwater Orange County 10,980 11,787 11,867 11,864 11,881 Groundwater Basin Purchased MWDOC 4,161 4,491 4,511 4,496 4,487 or Imported Water Recycled OCWD 545 560 575 590 605 Water Total 15,685 16,838 16,953 16,949 16,973 NOTES: Source: City of Newp ort Beach 2015 UWMP Table 3-4. Water Delivery System The City is 70 percent dependent on groundwater; the remaining 30 percent of its demand is met with imported and recycled water. MWDOC provides imported water to the City from MWD. Most of MWD's imported water supply is provided through the SWP and CRA and is treated at the Diemer and Weymouth plants. All of the water supplied by the City is sold to its retail customers (residential and commercial). The City maintains its own retail distribution system. The City delivers potable water through its water system, which consists of approximately 299 miles of pipelines ranging in size from four -inch to 30 -inch with various pipe materials. The City's extensive distribution system includes five pressure zones and six connections along the Orange County Feeder and the East Orange County Feeder No. 2. The total available capacity is 104 cubic feet per second (cfs). The City has five pump stations that deliver water to the upper zones; backup generation facilities ensure that the City can still deliver water to all zones during a rolling blackout. Groundwater Facilities The City receives a large percentage of its supply from groundwater. Groundwater is pumped from four wells within the City of Fountain Valley and travels through more than six miles of the 30 -inch Groundwater Transmission Main in the cities of Fountain Valley, Huntington Beach, and Costa Mesa. In addition, a pump station, a treatment facility, and a three -million -gallon (MG) reservoir assist in the transmission and treatment effort. The City meets up to 75 percent of its demand through groundwater, under regulations of OCWD's BPP. Recycled Water Facilities The City has no capability of treating water to produce recycled water, but through an agreement with OCWD, the City purchases between 300 and 800 AFY of recycled water for some large irrigation users. OCWD provides water through the Green Acres Project, which has the capability to deliver up to 1,000 AFY. The City began serving recycled water in 1999 and currently has approximately ten miles of recycled water distribution pipe that supplies 12 sites. The City has investigated future sites or locations for recycled water, but there are limitations to the availability of recycled connections. The City is looking into the possibility of inter -district recycled water transfers to provide recycled water to some associations and recreation facilities. The City is in the process of expanding its recycled 8-14 water network by adding new developments and structures to the recycled water system within the City's service area. Water Transmission System Water is delivered to the City's customers from the Groundwater Transmission Main and from diversions off of the Orange County Feeder and the East Orange County Feeder No. 2. The transmission system consists of pipelines, booster pump stations, and storage reservoirs and tanks. The current capacity of the City's potable water supply is 104 cfs. Number of Connections and Water Users Served As discussed above under "Current Uses," in FY 2016-17 there were 26,520 current customer active and inactive service connections in the City's potable water distribution system with all existing connections metered. Note that the AMI Project proposes upgrading a total of 26,309 meters for FY 2017-18 because 27 additional potable meters were installed in the City's system in the past year. The total population served in 2017 was 66,883. In addition, there are 12 connections for recycled water use. Energy Efficient Element of the Project Implementation of the AMI Project will result in energy savings; therefore, the Project includes an energy efficiency element. The City primarily relies on energy provided by Southern California Edison and the Southern California Gas Company, according to the City of Newport Beach Energy Action Plan (available online, 4/19/18, at the following link: http://www.newportbeachca.gov/how-do-i-/learn-more-abouVenergy-conservation and City of Newport Energy Action Plan). The City does not itself produce any renewable energy. The AMI Project would serve to modernize the City's water management facilities and equipment to increase energy efficiency by installing AMI technology throughout the City's service area. The proposed Phase 2 AMI Project would promote energy efficiency by reducing fuel consumption and frequency in maintenance of City vehicles (mopeds) previously used to collect monthly meter readings and quantifiably reduce energy consumption through significant improvements in water use efficiency and conservation that would reduce pumping and importation of water from MWD, which receives its supply from the SWP and the CRA. The importation of water is extremely energy intensive; much of the state's energy consumption is attributed to the conveyance of water. Any reduction in water loss and overall consumption would have an impact on increasing energy efficiency of the overall system operations. Based on the publication "California's Water — Energy Relationship" prepared by the California Energy Commission (November 2005, page 51), the amount of electrical energy required to transfer 1 AF of water from northern California to an area just north of the City requires an estimated 3,000 kWh. The same publication also estimates 2,000 kWh for each AF of water that is imported from the Colorado River to southern California. Combining the two water sources, the amount of power per AF required to transfer the water is approximately 2,500 kWh. The City's system is described above under "Water Delivery System". Therefore, it is estimated that it takes an average of 2,500 kWh/AF to convey imported water from SWP and CRA to the City and to distribute the water throughout the City's service area. City staff estimates that 434 kwh/AF is required to pump groundwater from the City's wells. The proposed Phase 2 AMI Project will result in a savings of 1,569.61 AFY, of which 25 percent or 392 AFY will be saved imported water, resulting in 981,006.25 kWh/year energy savings, while 75 percent or 1,177.21 AFY will be saved groundwater, resulting in 512,810.06 kWh/year energy savings. Combined, this results in 1,491,914.31 kWh/year energy saved. 1,569.61 AFY total water savings from Project: 25 percent imported water= 392 AFY * 2,500 kWh/AF = 981,006.25 kWh/year 75 percent groundwater = 1,177.21 AFY * 434 kwh/AF = 512,810.06 kWh/year 8-15 Total energy savings= 981,006.25 kWh/year + 512,810.06 kWh/year = 1,491,914.31 kWh/year Conserving energy results in reducing greenhouse gas (carbon) emissions. Carbon emission estimates are 0.61 lbs. of CO2/kWh based on the United States Environmental Protection Agency's 9th edition of eGRID, "Year 2010 eGRID Subregion Emissions - Greenhouse Gases". The Project will avoid GHG emissions of approximately 910,067.73 pounds of CO2 per year. The calculation includes: 1,491,914.31 kWh/year * .61 lbs of CO2/kWh = approximately 910,067.73 pounds of CO2 per year. Over the 20 -year lifespan of the AMI Project, this totals approximately 18,273,282.70 total pounds of avoided carbon emissions. The AMI Project will reduce imported and groundwater pumping requirements by reducing the demand on these water supplies. Past Working Relationships with Reclamation The City received a 2006 CALFED Grant from Reclamation in the amount of $300,000 for its Newport Beach Watershed Rehabilitation and Protection program, which included a direct install program for weather -based irrigation controllers. Project Location The Phase 2 AMI Project is located in Orange County, California, in the City of Newport Beach. The project latitude is 33.62319°N and longitude is 117.88440°W (center of City of Newport Beach). The Project includes replacing and retrofitting existing water meters throughout the City's service area and, therefore, the Project location is depicted by Figure 3 below of the City of Newport Beach's Service Area (shown in green). As shown in Figure 3, Irvine Ranch Water District and Mesa Water District also serve portions of the City of Newport Beach. Located along the Orange County coast of southern California, the City is bounded to the west by the Pacific Ocean. To the north, south, and east, the City is surrounded by the cities of Huntington Beach, Laguna Beach, and Irvine and Costa Mesa, respectively. The City water service area is a portion of the City's total boundaries and is shown on Figure 3. The City does not supply water to any other agency customers. Refer to Exhibit A attached to this proposal for a more detailed map of the Project's preliminary network design. Technical Project Description The City is proposing to implement the Phase 2 AMI Project as part of its long-term goal of water supply reliability and efficient water management. The Phase 2 AMI Project includes the upgrade of 26,309 existing water meters, ranging from 5/8" meters to 8" meters, (including 25,467 manually -read meters and 842 Automatic Meter Reading (AMR) vehicle drive-by read meters), with an AMI fixed base network system — Mi.Net AMI System - that will automatically collect and store hourly consumption data, aiding in water conservation and water use efficiency, improved water management, energy savings, and reduced carbon emissions. A total of 145 meters will be retrofit and 26,164 meters will be replaced. This Project builds upon the success of a current pilot program and will follow an initial implementation phase (Phase 1— 250 meters). Phase 2 of the AMI Implementation Program would expand the program to include the remaining 26,309 potable and recycled water meters. It is the goal of the City to fully implement the Mi.Net AMI System to maximize benefits to both the City and its customers city-wide. 8-16 Figure 3. City of Newport Beach Service Area Figure 4. The City's Location in Orange County, California Mau FERN" PU rAW j} kENoq¢IEp 9191X' Wm 5 •y wqE• o MAA au¢m ran s-- R DDSAW ,n.n s�cw M DMIY6 SVI 71101iM1YlE NWMiPMA 11 SI}1 ice, LlQ@ 5A„p GULPA y[f1[m EAI EFWZ FRESH IMe9 TELAW RIMIi1FI XWIr. �. 4 w, S swcl a�urti WENTLM City of Newport Beach r .a �519DE Crtm Y16YL 8-17 The City has secured a qualified contractor, Mueller Systems, through a competitive bid process in compliance with its Procurement Policy. A copy of the Mueller Systems Proposal is available upon request. A single contract with Mueller Systems will be used to implement the initial phase and Phase 2; however, only Phase 2 is being proposed for funding in this grant application. The City awarded Mueller Systems a contract based on the quality and content of their proposal, including proposed scope and fee. The work to be performed as part of the Technical Project Description shall consist of Mueller Systems, the selected qualified contractor, to install a "turn -key" AMI fixed -base network technology, retrofitting recently installed meters (3" to 8" meters) with AMI equipment, and installing new AMI water meters for 5/8" meters to 2" meters. The Mueller Systems' Mi.Net AMI system proposed by the selected contractor and accepted by the City, will only include City - approved equipment, technologies, and capabilities that are currently commercially available, have been implemented in other agencies, and have a proven history of success. The work will include, but is not limited to, procurement of water meters, procurement of AMI radio transmitters, software, a web -based utility management portal and a web -based customer portal for utility users to access consumption data. Additional work as part of this Project shall include the integration of the AMI fixed -base system into the City's customer information system and billing software (MUNIS CIS Software from Tyler Technologies). All work will be in compliance with all applicable local, state, and federal regulations for the prevention of water and air pollution. Project Tasks Task 1: Project Management and Reporting The City Project Manager will execute the grant agreement with Reclamation, coordinate with Reclamation's environmental reviewer, and complete required reporting. Reporting will be performed on a semiannual basis, including submittal of Financial Reports and Program Performance reports, as well as Financial Reimbursement Requests using the online ASAP system through the System for Award Management (SAM). Program Performance and Final Reports will be in accordance with requirements included in the grant agreement. Performance Reports will include information regarding the status of the Project's Performance Measures. The City Project Manager will monitor performance of the Project and will submit Project Performance Reports to Reclamation semi-annually as per the grant agreement. Performance Reports will include information regarding the status of the Project's Performance Measures, including Water Savings, Water Better Managed, Energy Savings, and Carbon Emission Savings. The methods of measuring Project performance, which will be used for producing these reports, are explained in more detail in this technical proposal under Subcriterion No. F.2 — Performance Measures. The City Project Manager will also oversee the Contractor, including coordination of City staff training, ensure site conditions are prepared and ready for installation of collectors and repeaters in accordance with the final network design, provide access to all work sites, provide storage facilities for project materials, and facilitate parking and office space for the Contractor team. Task 2: Environmental Review U.S. Bureau of Reclamation staff will perform the necessary environmental review and compliance for the Project. The Project is anticipated to qualify for a categorical exclusion. Task 3: Procurement and Installation of AMI System Subtask 3.1 Installation of AMI Infrastructure and Training to Support AMI System 8-18 Subtask 3.1 includes AMI Network Infrastructure, AMI Network and Deployment Tools, and Professional Services/Training. Mueller Systems will develop a detailed Project Plan and Schedule to guide procurement and installation of the AMI System. AMI Network Infrastructure The City will work collaboratively with the Contractor to select the appropriate equipment for the AMI Project. The City will only approve the use of equipment, technologies, and capabilities that are currently commercially available, have been implemented in other agencies, and have a proven history of success. A preliminary network design has been completed based on the inputs provided to Mueller Systems and is attached as Exhibit A. Mueller Systems will conduct final site surveys and develop a Final Network Design following contract execution. Both parties will review network design inclusive of locations, assumptions, etc. prior to installation of network equipment. If any City assets are needed for coverage, Mueller Systems will request City approval to adjust the design accordingly, and then request City approval of the Final Network Design. Mueller Systems will complete the installation of all required Collectors and ancillary equipment no later than 90 days from Effective Date of Phase 2 execution for locations where Data Collectors have been sited. The installed network will be tested for coverage as part of the Project. AMI Network and Deployment Tools This work will involve using a hand-held programmer to download the meter type, size and start read into the new unit and then the unit will be programmed and synced to the AMI network. All customers can expect no service interruption since the exchange does not require turning off the water service. Staff Training Staff Training includes training and documentation, AMI/MDMS System Integration, and Propagation Study. City staff will receive an introduction to the Mueller Systems Advanced Metering Infrastructure class describing the advantages of using an AMI system. The class covers the Mi.Net engineered system and its components. The Mi.Net User Interface is described in detail including creating reports, setting up alerts, generating on demand reads, and billing interface. Training shall be provided for a total of three training days to ensure competency of City -designated staff to provide for system operation and functionality, including classroom and field training. Mueller Systems shall provide training and assess staff competency throughout the training process and provide feedback and direction regarding ongoing training requirements throughout the implementation. Subtask 3.2 Meter Equipment Procurement Subtask 3.2 includes the procurement of Water Meters and Electronic Registers, Water Meter Retrofit Registers with Endpoint, Water Meter Lids, and Other Water Meter Related Equipment. The Mueller Systems' Mi.Net AMI system hardware will consist of the sizes and quantities shown in Table 5 of this proposal for a total of 26,309 existing water meters, ranging from 5/8" meters to 8" meters. A total of 145 meters will be retrofitted and 26,164 meters will be replaced. These are approximate quantities; actual values may differ and be handled via change order. All products, including third -party products such as boxes and lids, will be approved by the City prior to purchase by Mueller Systems. 8-19 Hardware delivery will be incorporated into the Project schedule at the time of order entry and as available. The City will issue purchase orders for product delivery to meet the installation schedule. A minimum of eight weeks' worth of product will be onsite during meter installations to avoid stock out. Shipment orders to be placed with full truck capacity to minimize freight costs. The City will consider maintaining stock of a minimum of 1 percent total project volume for spares. Subtask 3.3: Installation of AMI Meters Subtask 3.3 includes installation of Water Meters, Registers, and Endpoint; Water Meter Retrofit with Endpoint, Water Meter Lids, and Professional Services. Meter Installation Mueller Systems preferred installation contractor Vanguard will develop an Installation Plan. Installation of all meters, registers, nodes and boxes, etc. will be managed by the Mueller Systems project team. Installation procedures will include community outreach and customer communication and notification of homeowner at time of meter installation, through a variety of measures including, where appropriate and approved by the City, a consumer water bill insert one month prior to meter installations, website outreach via Frequently Asked Questions (FAQ) section on website for AMI Project, and social media. The City's Public Information Officer (PIO) will use the official City of Newport Beach Facebook/Twitter page alerting residents of the meter project. Meters and MiNode equipment will be installed by Mueller systems preferred installer subcontractor, Vanguard. Mueller Systems will provide training for installation teams on the use of MiNet specific installation tools and procedures. Meters will be installed by cycle/route order, following the meter reading sequence (Installation Plan) that's agreed upon by the City, working to ensure route efficiency. Most meters are outside in a pit location making appointments unnecessary. Less than 0.5 percent is estimated to require an appointment, which will be handled on a case-by- case basis. Work will be performed between 7:00 a.m. and 4:00 p.m. daily. After-hours work requests will be agreed upon in advance of work being perform between Mueller Systems and the City. The following steps are the installation procedures: Installation Procedures Community Outreach and Customer Communication • Door knock canvassing will be performed seven days prior to meter installation. If the homeowner/business owner is not present, a door hanger will be left alerting of upcoming meter installation/change out, along with contact information for Mueller Systems for inquiries. Vanguard Notification at Time of Meter Installation • Knock on the homeowner's door. If the homeowner/business owner is present, alert them of the meter installation/change out that will take place. Installation tech will perform the change out, which will include but is not limited to; verify provided data info (old meter#, last read, if available), turn on water faucet/hose connection, verify the meter is moving and the information is correct, turn water off (if no back flow preventer and take picture of meter in box showing valve position before start), remove old meter, install the new meter (check to make sure the arrow is pointing in the correct direction), turn on the water and check for leaks, flush the air from hose connection (leave door 8-20 hanger if hose connection not available), turn off the water, check for leaks and fill out needed paperwork/ update handheld data. After completion, installation tech will provide the homeowner/business owner with contact information for Mueller Systems should there be an issue that comes up after installation. Mueller Systems will have a dedicated phone number and email for this project. If the homeowner/business owner is not present, a door hanger will be left after the meter installation is complete informing the customer of the work performed and contact information for inquiries. All customer inquiries, complaints and field escalations will be handled by the installation team at the time of installation then referred to Mueller Systems or the City, if required. Installation Project Team Install Project Manager: Oversees the daily operations of the meter installation project. Deploys daily routes, instruction, inventory and supplies for install and QC. Distributes send -back problem accounts from previous day to be completed by installer prior to new installations for that day. Communicates daily with designated contacts from Mueller Systems and the City to address any issues. Tracks route allocation and scheduling with City, Mueller Systems and Vanguard Project Support. Conducts daily field visits and support to team to audit install quality, progress, training, etc. Vanguard Staffing Plan: Vanguard project staff will include: Install Project Manager to oversee all project operations and planning; Assistant Install Project Manager to support the Project Manager daily operations; Field Manager to oversee and assists with all field activity and issues; Meter Installers to perform homeowner/business owner notification and meter installation; and QA/QC staff to field inspect all work the day following installation. Assistant Install Project Manager: Assists the Project Manager with daily procedures and guidelines of the Project. Oversee the distribution and execution of the Send Back Manager (SBM) audits to the installers (issues with meters that prohibit installation of meters is documented in a SBM report and followed up on the next day to correct the issue). Completes the exceptions list to follow up with issues due to location, access, etc., and will complete the installation at the point of contact, if possible. Assist with daily installs as daily responsibilities allow. Conducts end -of -day check - ins with installers; collects installer daily field summary sheet, phones and paperwork; and ensures the Vanguard Work Order Management System data is uploaded successfully. Completes and submits a daily work summary to the Project Manager. Task 4: Final Implementation As identified, complete software integration and install any additional infrastructure required to gather the hourly consumption data. The City will deploy the Customer Portal and provide access by customers. Customer Portal will provide customers with real-time consumption data and will assist them in managing their individual water usage more efficiently. AMI Software Integration - Mi.Host Mueller Systems and the City will complete the CIS and Billing software integration. This effort will consist of collaboratively determining requirements, creation of a Software Integration Plan including acceptance criteria that will be reviewed and approved by representatives of both Mueller Systems and the City. 8-21 The City is using MUNIS CIS Software from Tyler Technologies. After the project kick-off meeting, the CIS and Billing software integration will begin. It is estimated that this process will take approximately three months working in cooperation with the City and subject matter experts knowledgeable in these systems. Basic AM I capabilities will include: utility user interface; list of installed meters with last uploaded reading; deployment wide consumption graph; meter details page for each meter; basic graphing of consumer consumption; customer information; account management; hourly reading on all meters; billing interface; customer information system (CIS) interface — periodic imports of customer updates from City's billing system; meter reading schedule — daily upload of consumption and hourly reading, on demand upon request. AMI Software Integration — Consumer Portal Mueller Systems and the City will complete the software integration necessary to provide the Consumer Portal with interval meter reads. This effort will consist of collaboratively determining requirements, creation of a Consumer Portal Integration Plan including acceptance criteria that will be reviewed and approved by representatives of both Mueller Systems and the City. Following completion of the MI.Host AMI software integration, workshops will begin. It is estimated that the entire process will take approximately three months and is predicated on the cooperation of the City and subject matter experts knowledgeable in these systems. Software Hosting - Ongoing System Costs Mueller Systems will provide Mi.Net AMI server hosting for an annual AMI Headend Software Hosting Fee. Evaluation Criteria Evaluation rritPrion A: Quantifiable Water Savings (30 points) Estimated water savings. For projects that conserve water, state the estimated amount of water expected to be conserved (in acre-feet per year) as a direct result of this project. Include a specific quantifiable water savings estimate; do not include a range of potential water savings. The Phase 2 AMI Project's total water savings is estimated at 1,569.61 AFY, or approximately 1,570 AFY, which was calculated based on data from existing AMI pilot studies conducted in the City of Newport Beach's service area and data from Eastern Municipal Water District's (EMWD) AMI pilot study. Current losses. Describe losses and explain where the water that will be conserved is currently going (e.g., back to the stream, spilled at the end of the ditch, seeping into the ground)? Current water losses due to leaks, metering inaccuracies and unauthorized consumptions are 805.37 AFY or 6.2 percent of the total potable water demand (2016 AWWA Water Loss Audit for the City of Newport Beach). Water lost from any leakage is likely seeping back into the ground and/or making its way into a storm drain or ocean. Support/documentation of estimated water savings. Provide sufficient detail supporting how the estimate was determined, including all supporting calculations. Consider questions associated with your project type when determining the estimated water savings, along with the necessary support needed for full review of your proposal. Municipal Metering projects can provide water savings ... when existing individual user meters are replaced with advanced metering infrastructure (AMI) meters....an applicant must provide a detailed description of the method used to estimate savings, including references to documented savings from similar previously implemented projects. 8-22 (a) How has the estimated average annual water savings that will result from the project been determined? Please provide all relevant calculations, assumptions, and supporting data. The AMI Project will achieve water savings by implementing the following: 1) More rapid identification and correction of water leaks (currently meters are read every month allowing leaks to go undetected and water to be wasted for a month before being noticed), 2) More accurate meter readings compared to aging meters (half the City's meters are at replacement age and are likely erroneously registering lower water use than actual water use), and 3) Reduced potable water usage based on customer education through the AMI Project's data on water usage. Amount of average water saved/conserved (AFY) for Proposed Phase 2 AMI Project: The estimated total water savings is 1,569.61 AFY. (Water Loss Reduction + Meter Inaccuracies + Reduction in Consumption) 483.58 AFY+ 375.69 AFY+ 710.34 AFY= 1,569.61 AFY or approximately 1,570 AFY of water saved by proposed Phase 2 AMI Project This estimate is calculated by adding 483.58 AFY saved through early leak detection + 375.69 AFY saved from reduced metering inaccuracies + 710.34 AFY saved through customer portal use, for a total of 1,569.61 AFY of water saved by the proposed Phase 2 AMI Project. Detail and supporting calculations for estimate: Water loss reduction for Proposed Phase 2 AMI Project. Current water losses due to leaks, metering inaccuracies and unauthorized consumptions are 805.37 AFY or 6.2 percent of the total potable water demand (2016 AWWA Water Loss Audit for the City of Newport Beach). The total potable water demand for the City's 26,520 service connections was approximately 12,985.14 AF in 2016. To determine total water loss, an AWWA water audit is completed for the City yearly. 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. Water losses are defined by the International Water Association (IWA) as the difference between distribution systems input volume (i.e. production) and billed authorized consumption. The audit was developed by the IWA Water Loss Task Force as a universal methodology that could be applied to any water distribution system. The water loss summary was calculated over a one-year period from available data. Total water losses that can be avoided due to private property leaks are 483.58 AFY (Valor Water Analytics 2017 AMI Benefits Quantification Project). Valor performed a study for an Inland Empire Utility Agency and found that on average, 15% of residential and commercial users would have a leak on property within a 12 -month period. Water consumption history for all of the leaks was analyzed and it was found that on average, each leak was 40,139 gallons of water and with early notification, water suppliers could save 39,930 gallons of that total. The estimated water savings came about due to earlier notification of the leaks. Before AMI, the water utility would not discover the leak for over 30 days. With AMI, they were able to discover the leak within a few days, let the resident know earlier and save water when the customer fixes the leak faster. The calculation is shown below. Valor Water found that in a system the size of Newport Beach (26,520 meters), approximately 490 AFY of water can be saved with a City-wide AMI system, by earlier notification for private property leaks. Currently the City of Newport Beach manually reads their meters and bills their customers bi-monthly. In this scenario, there is the 8-23 potential for a leak to go undetected for as long as 60 days. With an AMI system in place, the property owners can be notified via the customer interface or by a customer service representative as soon as a leak is detected by the system. Valor has shown that this can result in a reduction of water use by 490 AFY. In the Valor study, Aggregate water savings due to leak reduction by AMI analytics was estimated by examining customers in the post AMI period. The start and end time for each leak was recorded, and the flow rate of that leak was calculated by comparing the flowrate during the leak period to normal consumption periods. To calculate the water saved, it was assumed that the leak would have continued at this flowrate until the next bill date, at which point the customer is assumed to have identified the leak from the high bill and resolved the issue. Water loss reduction water savings for Proposed Phase 2 AMI Project: 15% of 26,309 = 3,946 leaks in a 12 -month period 39,930 gallons saved X 3,946 / 325,829 = 483.58 AFY water saved Meter Inaccuracies. It was noted in the City's 2015 UWMP that there is an opportunity to identify areas of, and develop strategies to minimize, high water loss. Based on current City data, implementation of the proposed Phase 2 AMI Project will result in a reduction of water loss of 3.3 percent and a reduction of water usage due to leak detection/customer notification and customer outreach/education from the customer portal of 9.2 percent. In total, the AMI project can save the City of Newport Beach up to 12.5 percent of its annual water usage. In addition, the City records daily production and demand data and reads all meters on a bi-monthly basis to assess and manage distribution system real loss. All metered sales and other verifiable uses, such as backwash, flush water, and operation and maintenance, are recorded. Customer service field staff assist customers with leak detection when found and as requested. The 375.69 AF was calculated from the 2016 AWWA water loss audit. The 375.69 is approximately 3 percent (3.08%) of the authorized consumption (12,179.77 AFY). The 3 percent is the estimated average of meter inaccuracy in the City's system. Meter Inaccuracies water savings for Proposed Phase 2 AMI Project: 0.0308 * 12,179.77 = 375.69 AFY. Customer Portal. Savings will also result from the deployment of a Customer Portal, through which customers for all AMI units will be able to independently access their own real-time flow data on the City's website. These additional water savings will come from self -leak detection and water use behavioral change on the part of customers who access the data for the purpose of monitoring their consumption. EMWD, a wholesaler of water in Southern California, recently implemented a demonstration project, which included implementation of a Customer Portal similar to the proposed AMI Project. For EMWD's demonstration project, they installed AMI units for a subset of their customer base, included daily water use information on their water bills, and made flow data available to customers on their website. EMWD determined that an average annual savings of 0.027 AF per meter was realized through implementation of their project. Since the City's proposed AMI Project includes these same activities, it is anticipated that this same level of savings can be achieved at a minimum for all of the City's AMI units. Therefore, applying the same savings of 0.027 AFY/meter to the proposed Project results in the following calculation: A demonstration project conducted by EMWD found that there is a water use reduction of 0.027 AFY/meter when a customer Portal accompanies the data received from and AMI system. This would translate into a savings of approximately 710.34 AFY for the City of Newport Beach. Customer Portal Reduction in Consumption for Proposed Phase 2 AMI Project: 0.027 AFY/meter * 26,309 meters = approximately 710.34 AFY 8-24 (b) How have current distribution system losses and/or the potential for reductions in water use by individual users been determined? Water losses for the City's water system total 805.37 AFY, which includes 438.51 AFY from apparent losses (metering inaccuracies and data handling errors) and 366.85 AFY for real losses (leaks and apparent losses). This data is from the City's 2016 water loss audit. The City records daily production and demand data and reads all meters on a bi-monthly basis to assess and manage distribution system real loss. All metered sales and other verifiable uses, such as backwash, flush water, and operation and maintenance, are recorded. The City does not have a formal program to detect and repair distribution system leaks; however, the City is evaluating the possibility of developing a formal leak detection program. Much of the City's steel and ductile iron pipe is protected from early deterioration with a cathodic protection system. This system draws the negative current away from the pipe to a sacrificial anode that erodes instead of the piping. This prevents leakage on the piping and reduces water loss. Customer service field staff are available to assist customers with leak detection. If a customer suspects a leak on their property or experiences a higher than normal water bill, they are encouraged to contact the City's Customer Service Division and request that a staff member check the customer's water meter. City staff only assist customers in attempting to locate the problem, but the customer is responsible for fixing the leak or hiring someone to make repairs. In cases of water meter leaks, a Water Customer Service representative is sent to a customer's property to ascertain the cause of the leak and make repairs, such as replacing blown -out gaskets or replacing a damaged valve or meter. If the leak occurs on the service line from the meter to a home or business, it is the customer's responsibility to make repairs or hire a plumber. The City's water services replacement, valve maintenance, and hydrant maintenance programs help to prevent system losses by systematically inspecting, repairing and replacing (when needed) aging or failing infrastructure. California Senate Bill (SB) 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. The AWWA water loss methodology determined the City's current distribution system losses and/or the potential for reductions in water use by individual users. Water losses are defined by the IWA as the difference between distribution systems input volume (i.e. production) and billed authorized consumption. The audit was developed by the IWA Water Loss Task Force as a universal methodology that could be applied to any water distribution system. This audit meets the requirements of SB 1420 that was signed into law in September 2014. 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. For 2015, the City's non -revenue water volume was approximately 889 AF and its water losses equaled 855 AF. These findings were a result of the AWWA Water Audit completed for the City and the 2015 UWMP. The water loss summary was calculated over a one-year period from available data and the methodology explained above. Also described above in section (a), the potential for reductions in water use by individual users were determined based on EMWD's demonstration project, which realized an average annual savings of 0.027 AF per meter resulted through implementation of their AMI Project. Some potential reasons for water loss include water used in operation and maintenance, pipe leaks, reservoir leaks, fire department use, meter error and unmetered water usage, as discussed in the City's 2015 UWMP. (c) For installing individual water user meters, refer to studies in the region or in the applicant's service area that are relevant to water use patterns and the potential for reducing such use. In the absence of such studies, please explain in detail how expected water use reductions have been estimated and the basis for the estimations. 8-25 Expected water use reduction and supporting documentation, including the EMWD's study on potential for reducing water use, are discussed above in sections (a) and (b). (d) If installing distribution main meters will result in conserved water, please provide support for this determination (including, but not limited to leakage studies, previous leakage reduction projects, etc.). Not applicable. No distribution main meters will be installed. (e) What types (manufacturer and model) of devices will be installed and what quantity of each? The AMI Project includes the upgrade of 26,309 existing meters (including 25,467 manually -read meters and 842 Automatic Meter Reading (AMR) vehicle drive-by read meters) with the Mueller Systems' Mi.Net AMI system, a fixed -base technology system that will automatically collect and store hourly consumption data, aiding in water conservation and water use efficiency, improved water management, and energy savings. A total of 145 meters will be retrofitted and 26,164 meters will be replaced. The hardware that makes up the Mueller Systems' Mi.Net AMI system that is to be installed within the City will consist of the sizes and quantities shown in Table 5 below. These are approximate and actual values may differ. Any differences in quantities will be handled via change order. All meters, registers, nodes and boxes, etc. will be installed by Mueller Systems. All products, including third party products such as boxes and lids, will be approved by the City prior to purchase by Mueller Systems. The AMI network and host software will be installed and managed by Mueller Systems. Table 5. AMI Devices Installed I 5/8" Meters Mueller 420 Series 16,917 3/4" Meters Mueller 435 Series 4 1" Meters Mueller 452 Series 7,259 1-1/2" Meters Mueller 500 Series 553 2" Meters Mueller 500 Series 1,444 3" Neptune Tru/Flo Compound Meters (Retrofit) 32 3" Neptune HPT Compound Meters (Retrofit) 11 4" Neptune Tru/Flo Compound Meters (Retrofit) 52 4" Neptune HPT Compound Meters (Retrofit) 9 4" Neptune Proctectus III Compound Meters (Retrofit) 1 6" Neptune Tru/Flo Compound Meters (Retrofit) 13 6" Neptune HPT Compound Meters (Retrofit) 3 6" Neptune Proctectus III Compound Meters (Retrofit) 2 8" Neptune HPT Compound Meters (Retrofit) 7 8" Neptune Proctectus III Compound Meters (Retrofit) 2 Totall 26,309 (f) How will actual water savings be verified upon completion of the project? WMO Actual water savings will be verified upon completion of the AMI Project through the use of utility data management software to conduct a water balance in the system. Additionally, all usage data for all meters equipped with AMI will be compared to historical values to determine water savings due to increased water use efficiency. The City's 2017 potable water demand was 15,541 AFY, met through locally extracted groundwater and purchased imported water from MWDOC. A total of 3,315 AFY of purchased imported water from MWDOC is currently being delivered to the City's service area for residential, commercial, and institutional customers. Water lost from any leakage is likely seeping back into the ground and/or making its way into a storm drain or ocean. A total of 1,569.61 AFY will be conserved by the proposed Phase 2 AMI Project. Water conserved as a result of the proposed Project's implementation represents a decrease in local water demand, which would decrease the amount imported by the City through MWDOC and MWD. Therefore, the conserved water will remain at its source, in the Bay -Delta and in the Colorado River, for environmental and other uses. Evaluation Criterion B: Water Supply Reliability (18 points) Address how the project will increase water supply reliability. Proposals that will address more significant water supply shortfalls benefitting multiple sectors and multiple water users, will be prioritized. General water supply reliability benefits (e.g., proposals that will increase resiliency to drought) will also be considered. Provide sufficient explanation of the project benefits and their significance. These benefits may include, but are not limited to, the following: Collaboration for Increased Water Supply Reliability o Does the project promote and encourage collaboration among parties in a way that helps increase the reliability of the water supply? Yes, the AMI Project promotes and encourages collaboration to increase water supply reliability. The AMI Project will improve the reliability of water supplies from both the SWP and the CRA, which would ultimately benefit people, agriculture, and the environment associated with both of these water supply sources. The AMI Project enhances its partnership and collaboration with MWDOC, MWD and OCWD to work towards greater regional water conservation and reliability efforts throughout Southern California. The City is committed to the collaboration and maintenance of regional and local partnerships to enhance water supply reliability by promoting a regional common goal and adding flexibility to water portfolios and distribution systems. The AMI Project would provide a giant step forward in contributing towards this goal. This AMI Project, if funded, could result in an additional availability of approximately 1,579 AFY of water that would otherwise be lost and unavailable to the City, the region, or in the Bay -Delta and Colorado River for environmental and other uses. Widespread support for the AMI Project from all water agencies across the region is demonstrated through the partnerships and collaborations, as it aims to enhance water reliability for the region. Letters of support were provided by MWDOC and OCWD and are included in Exhibit B. o Is there widespread support for the project? The City spoke with other local agencies who have implemented an AMI Project, including EMWD about the results of their AMI Pilot Study and Laguna Beach County Water District (LBCWD), who was a recipient of the WaterSMART: Water and Energy Efficiency Grant from Reclamation in FY 2016. LBCWD is a both a MWDOC member agency and a neighboring agency to the City, and their funded project is similar in nature to the proposed AMI Project; therefore, it aided the City in gaining insight about the AMI system and provided support for the City's AM Project. 8-27 o What is the significance of the collaboration/support? Collaboration in support and implementation of the AMI Project advances measures towards water reliability in the region. This AMI Project, if funded, could result in an additional availability of approximately 1,570 AFY of water that would otherwise be lost and unavailable to the City and the Orange County region. Increased collaboration between the City and its customers will also demonstrate acknowledgement of the City's progressive approach to increasing conservation through improved water management. o Is the possibility of future water conservation improvements by other water users enhanced by completion of this project? The potential for future water conservation improvements by other water users throughout the region would result by completion of the City's AMI Project. Water conservation and water management will be enhanced by the completion of this AMI Project. The AMI Project is market transformative and could become mainstream based on the beneficial results. The City's customers are already committed to and have been successful in maximizing water conservation. The AMI Project would assist the City in serving as an example of water use efficiency and water conservation for other water agencies that are near 100 percent dependent on imported water supplies. The region includes numerous other water suppliers that could use the collective results of the Project to advance their water conservation improvement measures. Water Available to Address a Saecific Water Reliabilitv Concern o Explain and provide detail of the specific issue(s) in the area that is impacting water reliability, such as shortages due to drought, increased demand, or reduced deliveries. California has been experiencing historic drought conditions across the entire state. California's drought conditions have been severe in the Project area but are now shown as moderate. Governor Brown's declaration of a drought emergency on January 17, 2014, resulted in the District immediately issuing news releases and notices to their service area customers to reduce water use up to 20 percent. California has experienced dry years and droughts from 2007 to 2011 and from 2013 to the present, and this has placed an immense strain on water supplies resulting some of the lowest water storage levels in history. Improvements in water use efficiency will free up additional supply to help address shortages elsewhere. In response to the lowest Sierra snowpack in recorded history and the ongoing drought conditions, Governor Brown signed Executive Order B-29-15 on April 1, 2015 calling for statewide mandatory water reductions to assist California in becoming more drought resilient. The Governor directed the State Water Resources Control Board (SWRCB) to implement mandatory water reductions in cities and towns across California to reduce water usage by 25 percent. On May 5, 2015, the SWRCB adopted an emergency regulation requiring an immediate 25 percent reduction in overall potable urban water use statewide in accordance with Gov. Jerry Brown's Executive Order issued on April 1, 2015. To reduce water use by 25 percent statewide, the regulation adopted by the State Board places each urban water supplier into one of eight tiers which are assigned a conservation standard, ranging between 4 percent and 36 percent. On November 13, 2015, Governor Brown issued Executive Order B-36-15 (EO B-36-15) that calls for an extension of restrictions to urban potable water usage, which was the fifth in a series of Executive Orders by Governor Brown on actions necessary to address California's severe drought conditions, which directed the State Water Board to implement mandatory water reductions in urban areas to reduce potable urban water usage by 25 percent statewide. In 2016, the SWRCB adjusted the water reduction percentage to 22 percent based on a variety of hydrologic conditions. In February 2017, the SWRCB ruled to extend the water reduction. 2015 was the fourth consecutive year of one of the worst droughts in California's history. 2014 was the hottest year and 2013 was the driest year on record in the state. Due to these unprecedented hot and dry conditions, nearly half of the water stored in the regions reservoirs has been used and one wet year will not make up for the severe water shortage conditions. Despite moderate January 2018 precipitation in the Sierra Nevada after an historically dry December 2017, the California Department of Water Resources (DWR) February 1, 2018 manual 8-2s snow survey east of Sacramento found little snowpack there, two months into what is typically California's wettest three months (2/1/2018, available online: http://www.water.ca.gov/news/newsreleases/2018/020118snowsurvey.pdf). A summary of drought impacts is shown in Table 6. DWR collects electronic readings from 103 stations scattered throughout the Sierra. Measurements indicate statewide that the snowpack is 27 percent of the Feb. 1 average. Therefore, the snow survey shows water content far below average for this time of year. On average, the snowpack supplies about 30 percent of California's water needs as it melts in the spring and early summer. The U.S. Drought Monitor declared the County of Orange, California, as in moderate drought on March 22, 2018, as shown in Figure 5. Table 6. Summary of Drought Impacts Risk to meeting existing Drinking Water Demands Risk to meeting existing Agricultural Demands Risk to meeting Ecosystem Water Demands Risk to Groundwater Supplies and Economic Costs Or other drought related adverse impacts -County of Orange, -Reduced -Coastal During the drought, the -Increased water quality issues - declared as extreme reliability on Sage Orange County Water Increase in water demands for category for the 2014 imported Scrub District spent $80 million landscape use due to higher Drought, now declared as water supply does not purchasing untreated temperatures severe and moderate in for irrigation. tolerate imported water from the -Risk of catastrophic wildfires 2018. -Agricultural repeated MWD. The water was -Limited imported water supply -Region is under threat of demands fire. recharged into the threatens residents, including not receiving imported equal -Oak trees groundwater basin which DACs, agriculture, and the water supply for potable approx. 16% look helped to partially refill business community, including uses during catastrophic of Southern stressed. the basin and offset the property values if water is not or drought conditions, California's impacts of the drought. available for irrigation. -50% reliance on imported p water demand. Although groundwater levels fell, they were still -Tension over finite supplies. water for potable supply. within normal historic operating range. 8-29 Figure 5. U.S. Drought Monitor Map showing Orange County, CA U.S. Drought Monitor March 20, 2018 California (Released lid8a.m.EDTursday, Mar. 22 21748) Drought Conditions (Percent Area) Intensity: DO Abnormally Dry _ D3 Extreme Drought D1 Moderate Drought _ D4 Exceptional Drought D2 Severe Drought The Drought Monitor ivcuses on broadscale conditions. Local conditions may vary. See accompanying text summary for forecast statements- Authol: Chris Fenimore NCEIINESDISINOAA sw USDA http:11droughtmonitor.un I.edul o Describe where the conserved water will go/how it will be used. Will the project directly address a heightened competition for finite water supplies and over -allocation (e.g., population growth)? Will it be left in the river system? Water conserved as a result of the proposed Project's implementation represents a decrease in local demand, which would decrease the amount imported by the City through MWDOC and MWD; thereby, the conserved water will remain at its source, in the Bay -Delta and in the Colorado River, for environmental and other uses. The imported potable water conserved by the AMI Project will remain at its source for environmental and other uses, thereby alleviating stress on these ecosystems. The Project will yield real water supply benefits to urban water users in the short term by conserving 1,569.61 AFY, directly offsetting approximately 25 percent or 392 AFY of imported water demand. This benefit will be realized annually, year-round for the 20 -year life of the Project. Drought conditions result in a heightened competition for finite water supplies and over -allocation within MWD's service area. The City is 100 percent reliant on imported water from MWD and MWDOC for 25 percent of its potable water supplies. With nearly 19 million people in MWD's service area, Southern California is heavily reliant on imported water supplies to meet demands. Strategies to reduce this reliance are sought in various ways through local supply development and conservation. Imported water supplies are more expensive and more energy intensive than recycled water or other local supplies. This can result in competition for limited water supplies through the Delta and the Colorado River Basin. It was forecasted by Reclamation that projected demands will exceed available supply in the Colorado River, and to reduce the supply gap, increased conservation and water use efficiency measures will need to be implemented. The Project increases local water supply reliability by reducing the need for potable water and putting recycled water supplies to greater beneficial use. 8-30 None 11.08 DO -D4 88.92 D1 -D4 47.68 D2 -D4 22.31 r • 0.43 r 0.00 Current Last Week 11 08 88.92 47.68 22-31 0.43 0.00 0.313201 a 3 Months Apo s; 70 44.30 12.69 000 0.n0 0.00 12-1&201' Start of Calendar Year 55.70 44.30 12.69 0.00 D.OD 0.00 o,-0a2ma Start or Water Year 77.88 22.12 8.24 0.00 D.00 0.00 03262017 One Year Aga 76.54 23.46 6.24 1.06 9.00 0.00 0.321-2017 Intensity: DO Abnormally Dry _ D3 Extreme Drought D1 Moderate Drought _ D4 Exceptional Drought D2 Severe Drought The Drought Monitor ivcuses on broadscale conditions. Local conditions may vary. See accompanying text summary for forecast statements- Authol: Chris Fenimore NCEIINESDISINOAA sw USDA http:11droughtmonitor.un I.edul o Describe where the conserved water will go/how it will be used. Will the project directly address a heightened competition for finite water supplies and over -allocation (e.g., population growth)? Will it be left in the river system? Water conserved as a result of the proposed Project's implementation represents a decrease in local demand, which would decrease the amount imported by the City through MWDOC and MWD; thereby, the conserved water will remain at its source, in the Bay -Delta and in the Colorado River, for environmental and other uses. The imported potable water conserved by the AMI Project will remain at its source for environmental and other uses, thereby alleviating stress on these ecosystems. The Project will yield real water supply benefits to urban water users in the short term by conserving 1,569.61 AFY, directly offsetting approximately 25 percent or 392 AFY of imported water demand. This benefit will be realized annually, year-round for the 20 -year life of the Project. Drought conditions result in a heightened competition for finite water supplies and over -allocation within MWD's service area. The City is 100 percent reliant on imported water from MWD and MWDOC for 25 percent of its potable water supplies. With nearly 19 million people in MWD's service area, Southern California is heavily reliant on imported water supplies to meet demands. Strategies to reduce this reliance are sought in various ways through local supply development and conservation. Imported water supplies are more expensive and more energy intensive than recycled water or other local supplies. This can result in competition for limited water supplies through the Delta and the Colorado River Basin. It was forecasted by Reclamation that projected demands will exceed available supply in the Colorado River, and to reduce the supply gap, increased conservation and water use efficiency measures will need to be implemented. The Project increases local water supply reliability by reducing the need for potable water and putting recycled water supplies to greater beneficial use. 8-30 o Describe how the project will address the water reliability concern. This AMI Project will help address the issue of threatened water reliability for the Orange County region by conserving 1,569.61 AFY of water, including 392 AFY of imported potable water. The City is 100 percent reliant on imported water for 25 percent of its supply, while the region is 50 percent dependent on imported water. Imported pipelines cross five faults over 200 times, posing a high vulnerability to the region during times of drought, earthquake, or other catastrophic event. The 2004/2013 South Orange County Reliability Studies identified the following Risks: Emergency shutdowns of outside facilities, prolonged drought, and lack of local project implementation. By implementing the Phase 2 AMI Project, approximately 31,511.80 AF of imported will be saved over the 20 -year lifetime of the AMI Project, thereby decreasing the region's imported water dependency and increasing local reliability. The AMI Project will improve the reliability of water supplies from both SWP and CRA, which would ultimately benefit people, agriculture, and the environment associated with both of these water supply sources. The City is committed to the collaboration and maintenance of regional and local partnerships to enhance water supply reliability by promoting a regional common goal and adding flexibility to water portfolios and distribution systems. The AMI Project would provide a major step forward in contributing towards this goal. The AMI Project, if funded, could result in an additional availability of nearly 1,570 AFY of water that would otherwise be lost and unavailable to the City, the Orange County Region, or the conserved water will remain at its source, in the Bay -Delta and in the Colorado River, for environmental and other uses. The AMI Project will directly contribute to building drought resiliency by implementing a high caliber and proven water management strategy that emphasizes water reliability, conservation, and increase water use efficiency. All of these factors are critical for ensuring water supply sustainability in the future, given the increasing costs of imported water and the severe water supply challenges that Southern California constantly faces. The source of water for this AMI Project is imported water and groundwater that would be conserved through the AMI Project implementation. California faces unmatched drought conditions in 2015 after recording the hottest year on record in 2014 and the driest year ever recorded in 2013. 2015 had some of the warmest and driest months on record, including a record low snowpack in the Sierra Nevada. Today, 27 million Californians are living in areas experiencing exceptional drought, according to the U.S. Drought Monitor. For southern California, MWD's deliveries from northern California through SWP are currently at just 20 percent of its contracted amount. The SWP typically provides about a third of Southern California's water. Storage in the City's other supply source—the Colorado River— stands at less than 50 percent of capacity after 15 drought years in the Southwest. Imported water is impacted by climate variation by being greatly limited during the current and projected drought conditions. Climate variation presents unpredictable weather patterns and unreliable supplies of water. Therefore, the reliability of imported water availability has been significantly reduced. Water shortages have massive impacts with few solutions that can be immediately implemented to mitigate them. This has increased the immediacy of local resource development and increasingly aggressive water conservation projects and programs in the City's water service area. The proposed AMI Project will improve the reliability of water supplies during times of drought. In addition, the associated costs and energy required to deliver 392 AFY of imported water to the City are saved, which results in less financial impact to the City and less environmental impact from greenhouse gases. The AMI Project will reduce imported water demands and energy consumption in the long term. o Will the project help to prevent a water -related crisis or conflict? Is there frequently tension or litigation over water in the basin? 8-31 There is a water -related conflict within the Bay -Delta and the Colorado River (over limited water supplies) from which the City receives its imported water. This AMI Project will help to reduce the amount of water needed for import to southern California through the MWD system. In addition, this AMI Project may serve as a model to other agencies that are looking for ways to meet current emergency drought reductions. The City is 100 percent reliant on imported water supplies from the Bay -Delta and CRA for 25 percent of its potable water supply. The Orange County region is 50 percent reliant on the same imported water supplies. Therefore, the water -related conflict within the Bay -Delta and Colorado River is significant and implementing the AMI Project will assist in increasing local water reliability and decreasing imported water demand. The AMI Project receives water from the Colorado River Basin, which experiences frequent tension over the water in the Colorado River Basin. o Provide a description of the mechanism that will be used, if necessary, to put the conserved water to the intended use. The conserved water will be reflected in reduced potable demands in the City's water management strategy. A portion of the conserved water will remain in the Bay -Delta or CRA, while the balance will remain in the OCWD's groundwater basin. o Describe the roles of any partners in the process. Please attach any relevant supporting documents. There are no specific project partners. o Indicate the quantity of conserved water that will be used for the intended purpose. Up to 392 AFY will remain in the Bay -Delta or CRA, while 1,177.21 will remain in the OCWD's groundwater basin. Proiect Benefits for Indian Tribes The proposed Project is associated with the Colorado River Basin, and the City receives water from MWD via MWDOC, which currently relies on the CRA and the SWP as its primary sources of water. The Project itself does not directly involve Reclamation project lands or Reclamation facilities, but it will increase the availability of the overall water supply through improvements in water use efficiency and conservation and ultimately benefit the Colorado River Basin. Reclamation manages the Colorado River system from which MWD imports water. The City purchases approximately 25 percent of its supply from MWD through MWDOC. Water is imported from the Colorado River and from northern California via the SWP. Imported water savings associated with the Project translate to more water remaining in the fragile systems of the Bay -Delta and the Colorado River. The proposed Project directly supports Reclamation's current efforts to further advance water use efficiency and conservation. The Project benefits Reclamation because it reduces imported water supplies from the Colorado River and northern California. The Project will not directly benefit tribes nor help Reclamation meet trust responsibilities to Tribes as there is no direct impact on tribes in the Project area. However, the Project may help Reclamation meet trust responsibilities in the SWP or CRA areas since the Project will be reducing demand on these sources. While the Project is not in the same basin as a Reclamation project or activity, it will contribute to a basin where a Reclamation project is located. The imported water savings attained will be the result of reduced imports from the Bay -Delta and the Colorado River, thereby impacting the Colorado River Basin. By reducing the amount of water imported, this water in effect remains in the basin from which it originates or is made available to meet demands in other areas of the State. Any increase in water reliability and greater availability in overall water supply resulting from water use efficiency efforts would also help Reclamation in meeting the federal Indian trust responsibility, a legally enforceable fiduciary obligation on the part of the United States to protect tribal treaty rights, lands, assets, and resources, to the tribes. 8-32 Project benefits for Rural or Economically Disadvantaged Communities Integrating system -wide water conservation measures is critical for meeting water supply demands. The AMI Project is needed to ensure Disadvantaged Communities (DACs) have a reliable potable water supply. The Orange County region includes DACs, including areas in the City of Newport Beach, as shown in the Figure 6 below. The Orange County region is highly reliant on imported water supply, with approximately 50 percent of its water supply coming from imported sources. The City receives imported water from MWDOC, whose service area includes DACs. The proposed AMI Project assists in reducing the region's reliance on imported water supply through saving 392 AFY. The City's 2015 UWMP includes water use projections for single-family and multi -family residential housing for lower income and affordable households. This assists the City in complying with the requirement under Government Code Section 65589.7 granting priority for providing water service to lower income households. A lower income household is defined as a household earning below 80 percent of the median household income (MHI). California Department of Water Resources (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, 2015 UWMP Guidebook, February 2016). The Regional Housing Needs Assessment (RHNA) assists jurisdictions in updating general plan's housing elements section. The RHNA identifies housing needs and assesses households by income level for the City through 2010 decennial Census and 2005-2009 American Community Survey data. The fifth cycle of the RHNA covers the planning period of October 2013 to October 2021. The Southern California Association of Governments (SCAG) adopted the RHNA Allocation Plan for this cycle on October 4, 2012 requiring housing elements updates by October 15, 2013. 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. All together the City has 28.22 percent low-income housing (SCAG, RHNA, November 2013). Table 7 shows the projected water demand for low-income households in the City. The AMI Project's water savings of 1,569.61 AFY will ensure a reliable supply for the City's low-income households and DACs. Table 7: Projected Water Demands for Housing Needed for Low -Income Households (AF) Fiscal Year Ending 2020 2025 2030 2035 2040 Total Residential Demand 8,285 8,908 8,962 8,952 8,957 SF Residential Demand — Low -Income Households 1,787 1,921 1,933 1,931 1,932 MF Residential Demand -Low Income Households 551 592 596 595 596 Total Low -Income Households Demand 2,338 2,514 2,529 2,526 2,528 8-33 Figure 6. Disadvantaged Communities Map ... Yom. ..,.. _,,. ■nYah W. 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A��a� Waaa - - �� 1'/Wduw►I�Fx 8-34 Project Benefit to Species Species include federally threatened or endangered, a federally recognized candidate species, a state listed species, or a species of particular recreational, or economic importance. Describe the relationship of the species to the water supply, and whether the species is adversely affected by a Reclamation project. The AMI Project improves the status of the state listed species by making more water available in the Bay - Delta to support the species and their habitats. Approximately 3,315 AFY of imported water is moved from the northern California Bay -Delta area through the SWP and the Colorado River Aqueduct to meet the City's demand for water, as shown in Table 1. With a reduction in this imported water demand by 392 AFY, the impact on the Delta Smelt, Salmon, and other state listed species currently impacted by water pumping activities will be alleviated to the extent of the AMI Project. Endemic to the upper Sacramento -San Joaquin Estuary of California, Delta Smelt mainly inhabit the freshwater -saltwater mixing zone of the estuary, except during its spawning season, when it migrates upstream to freshwater following winter "first flush" flow events (around March to May). It functions as an indicator species for the overall health of the Delta's ecosystem. Because of its one-year lifecycle and relatively low fecundity, it is very susceptible to changes in the environmental conditions of its native habitat. Efforts to protect the endangered fish from further decline have focused on limiting or modifying the large- scale pumping activities of state and federal water projects at the southern end of the estuary thereby limiting water available to farming. However, these efforts have not prevented the species from becoming functionally extinct in the wild. Historically, Delta Smelt were relatively abundant in the upper Sacramento - San Joaquin Estuary, with populations declining dramatically in the 1980s. They were listed as threatened by both federal and state governments in 1993, and sustained record -low abundance indices prompted their listing as endangered under the California Endangered Species Act in 2010.Critical habitat was listed for Delta Smelt on December 19, 1994. Delta smelt are threatened with extinction due to anthropogenic alterations to their ecosystem, including urbanization, non-native species, water diversions, contaminants, and the conversion of complex tidal habitats to leveed channels. The Delta Smelt species is subject to a recovery plan under the ESA. The Delta Smelt was included in the Recovery Plan for the Sacramento -San Joaquin Delta Native Fishes initially approved in November 1996. The Delta Smelt was also designated as a protected species through a 2007 court order. The City's water supply consists of imported water obtained from MWDOC via MWD. MWD typically blends supplies from its CRA with water allocated from the SWP before delivery to the City. As the AMI Project seeks to offset imported water deliveries to the City by 392 AFY, benefits also include alleviating stress on the Bay -Delta habitat. Rationing water supplies received from the Bay -Delta helps limit the ecological impact of importing water. Twenty-nine known species of fish once populated the estuary and currently twelve of those species are considered gone or threatened by extinction. The Bay -Delta is also home to the Delta Smelt, which is a protected species through a 2007 court order. With a reduction in this imported water demand, the impact on the Delta Smelt, Salmon and other species currently impacted by water pumping activities, will be alleviated to the extent of the AMI Project. Any reduction in water use from the SWP for this region has a positive impact on the species in and around the Bay -Delta area. 8-35 Additional Project Water Supply Reliability Not Described Above The Project will directly reduce the City's demand on water by 1,569.61 AFY through the Project's water savings. Twenty-five percent of the City's water supply consists solely of imported water obtained from MWD through MWDOC, amounting to 392 AFY of imported water savings. The City is limited in the amount of groundwater it can pump each year. Hence, potable water savings from the Project will directly reduce the amount of imported water production by the City and allow 392 AFY to be conserved to instream flows in the SWP (Bay -Delta) and CRA. As described above, the City's current potable water demand is 13,318 AFY, met through locally extracted groundwater and purchased imported water from MWDOC. A total of 3,315 AFY of purchased imported water from MWDOC is currently being delivered to the City's service area for residential, commercial, and institutional customers. Water lost through any leakage is likely seeping back into the ground and/or making its way into a storm drain or ocean. A total of 1,569.61 AFY will be conserved by the proposed Phase 2 AMI Project. Water conserved as a result of the proposed Project's implementation represents a decrease in local demand, which would decrease the amount imported by the City through MWDOC and MWD by 392 AFY; therefore, the conserved water will remain at its source, in the Bay -Delta and in the Colorado River, for environmental and other uses. MWD typically blends supplies from its CRA with water allocated from the SWP before delivery to MWDOC and the City. MWD 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 (MWD, 2015 UWMP, June 2016). Unfortunately, MWD 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. Over the past 16 years (2000-2015), there have only been three years when the Colorado River flow has been above average (MWD, 2015 UWMP, June 2016). The long-term imbalance in future supply and demand is projected to be approximately 3.2 MAF by the year 2060. 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. Climate change will affect future supply and demand as increasing temperatures may increase evapotranspiration from vegetation along with an increase in water loss due to evaporation in reservoirs, therefore reducing the available amount of supply from the Colorado River and exacerbating imbalances between increasing demands from rapid growth and decreasing supplies. "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 AFY. Of this amount, 4.13 million AFY is the maximum Table A water available for delivery from the Delta pumps as stated in the State Water Contract. However, deliveries commonly are less than 50 percent of the Table A. DWR has altered the SWP operations to accommodate species offish listed under the Biops, and these changes have limited SWP deliveries. DWR's Water Allocation Analysis indicated that export restrictions are currently reducing annual deliveries to MWD as much as 150 trillion acre feet (TAF) to 200 TAF under median hydrologic conditions. The AMI Project will offset imported water deliveries to the City by 392 AFY, thereby alleviating stress on the Bay -Delta habitat. Evaluation Criterion C: Implementing Hydropower (18 points) The proposed Phase 2 AMI Project does not include hydropower components. Evaluation Criterion D: Complementing On -Farm Irrigation Improvements (10 points) Rwf The proposed Phase 2 AMI Project indirectly complements on-farm irrigation improvements in the Bay Delta region by reducing imported water demand on the Bay Delta (via the SWP) by approximately 392 AFY, making this same amount of water available for farm and agricultural practices in the Bay Delta. Through the Bay Delta Initiative (BDI), the Natural Resources Conservation Service (NRCS) and its local partners aim to address the critical water quantity, water quality and habitat restoration needs of the Bay Delta region. The Bay Delta region encompasses over 38 million acres and is one of the most important estuary systems in the nation. This region provides drinking water for more than 23 million people and irrigation water to four million acres of farmland. Over $400 billion in economic activities occur in the region. America's stewardship of the Bay Delta is critical. Increased demand for limited water resources and declining water quality threaten the continued economic and environmental well-being of the region. For over 75 years, USDA and NRCS have partnered with agricultural producers, forest landowners, urban and suburban residents and other conservation partners to restore wetlands and enhance aquatic and other wildlife habitat on working agricultural land and private non -industrial forest land in the Bay watershed. The proposed AMI Project will support the BDI and on-farm water use efficiency, conservation, and overall irrigation improvements by allowing more water to remain in the Bay Delta. Evaluation Criterion E: Department of the Interior Priorities (10 points) The following demonstrates that the AMI Project supports the Department of the Interior priorities. Only the priorities applicable to the AMI Project have been addressed. 1. Creating a conservation stewardship legacy second only to Teddy Roosevelt a. Utilize science to identify best practices to manage land and water resources and adapt to changes in the environment The proposed AMI Project utilizes science to manage water resources by implementing AMI technology as a best practice for improved leak detection, reduced meter inaccuracies, and reduced water consumption through the customer portal. Reduced water consumption and improved water savings will positively impact land and water management by reducing non -point source pollutants from entering the Upper Newport Bay Ecological Reserve, which spans 752 acres and is one of the largest natural estuaries remaining in California. According to Brian Shelton, of the California Department of Fish and wildlife, less than five percent of California's original coastal estuaries exist today. Therefore, the AMI Project will manage land and water resources, and allow the City of Newport Beach to adapt to changes in the environment, including drought conditions currently impacting the water supply. b. Examine land use planning processes and land use designations that govern public use and access The AMI Project area is located throughout the City of Newport Beach's water service area. The City of Newport Beach Local Coastal Program Coastal Land Use Plan (Amended by the California Coastal Commission on June 7, 2017 Adopted July 26, 2016, Resolution No. 2016-90) was derived from the Land Use Element of the City's General Plan and is intended to identify the distribution of land uses in the coastal zone. The Land Use Element may contain more precise development limits for specific properties. Should a conflict exist, the land use intensity or residential density limit that is most protective of coastal resources shall take precedence. The AMI Project integrates the Coastal Land Use Plan by reducing leaks and unaccounted for water that would potentially contribute to nonpoint source pollution making its way to coastal water resources, including the Newport Beach Back Bay. The Back Bay is the colloquial term for the inland delta in Newport Beach, California. It connects the Upper Newport Bay with 8-37 the Newport Harbor. It is a nature reserve home to several species of birds with hiking and biking trails. The bay is recognized for protection by the California Bays and Estuaries Policy. The AMI Project implements water conservation into land use throughout the City's water service area across all land uses with metered water accounts. c. Revise and streamline the environmental and regulatory review process while maintaining environmental standards. The AMI Project is an example of the streamlined environmental and regulatory review process in that it has filed a Categorical Exemption per CEQA Title 14 (California Code of Regulations), Chapter 3, Article 19, Section 15302c (see Figure 7), and it is anticipated that a Categorical Exclusion or Finding of No Significant Impacts under NEPA will be granted given the nature of the Project that includes simply replacing or retrofitting existing meters with upgraded AMI meters. A Categorical Exclusion seems appropriate since the AMI Project will likely not have a significant effect on the human environment and, therefore, neither an environmental assessment nor an environmental impact statement would be required. d. Review DOI water storage, transportation, and distribution systems to identify opportunities to resolve conflicts and expand capacity The AMI Project will result in water savings and therefore, reduce imported water demand, which is supplied by MWDOC via MWD, which receives water from the SWP and CRA. The Project will help reduce water -related conflict (over limited water supplies) within the Bay -Delta and the Colorado River by leaving additional supplies in those systems. e. Foster relationships with conservation organizations advocating for balanced stewardship and use of public lands The AMI Project fosters relationships with conservation organizations that are involved with the Newport Beach Back Bay, which includes community education programs, by increasing water conservation and reducing nonpoint source pollution entering the Bay. Educating the youth is one of the most important ways to the preservation of nature, and at the Newport Back Bay there are many organizations and groups that seek to educate members of the community about the importance of nature preserves. The Newport Bay Conservancy, in cooperation with OC Parks, California Department of Fish and Wildlife, the City of Newport Beach, the Newport Aquatic Center, the California Coastal Commission, along with several other organizations, aims to reach out to the public regarding their goal. Their goal is "to increase environmental awareness and promote environmental stewardship at the Bay, in the watershed and beyond so as to protect and preserve not just Upper Newport Bay, but the planet." The Newport Back Bay Science Center is located in Newport Beach, California on Shellmaker Island. This center's main focus is to supply information on estuarine and marine biology through activities and lectures in a year- round program. This science center is connected to the watershed, which is home to around 175 thousand people in urban cities. The Newport Back Bay Science Center's goal is to educate the citizens on how they can aid in keeping the Back Bay area clean, and how they affect the watershed. They strive to educate this generation and generations to come to keep the movement for a clean environment on an incline. L Identify and implement initiatives to expand access to DOI lands for hunting and fishing; This is not applicable. g. Shift the balance towards providing greater public access to public lands over restrictions 8-38 to access The AMI Project supports preserving the water quality of the Back Bay and its public access to activities that are open to the public, including kayaking, canoeing, picnicking, horseback riding, biking, hiking and bird watching. 2. Utilizing our natural resources a. Ensure American Energy is available to meet our security and economic needs As previously described, the AMI Project will result in 1,569.61 AFY of water savings, which translates to a savings of energy by reducing the amount of energy required to distribute imported water and groundwater. The total reduced water demand results in energy savings that equates to a total of 1,491,914.31 kWh/year, making this same amount of energy available to meet security and economic needs. b. Ensure access to mineral resources, especially the critical and rare earth minerals needed for scientific, technological, or military applications; This is not applicable. c. Refocus timber programs to embrace the entire `healthy forests' lifecycle; This is not applicable. d. Manage competition for grazing resources. This is not applicable. 3. Restoring trust with local communities a. Be a better neighbor with those closest to our resources by improving dialogue and relationships with persons and entities bordering our lands The AMI Project restores trust with local communities through the Customer Portal, which will allow customers in the water service area communities to better understand and monitor their water usage. The Customer Portal will allow the City's water customers to have real-time access to their account information and gives them the ability to set up water usage alerts, including leak reports and water budgeting, on an internet-based platform. AMI Project installation procedures will include community outreach and customer communication and notification of homeowner at time of meter installation, through a variety of measures including, where appropriate and approved by the City, a consumer water bill insert one month prior to meter installations, website outreach via Frequently Asked Questions (FAQ) section on website for AMI Project, and social media - Utility Facebook/Twitter page alerting residents of the meter project. The public outreach component of the Project will also serve to better educate customers on water resources, management, and conservation. b. Expand the lines of communication with Governors, state natural resource offices, Fish and Wildlife offices, water authorities, county commissioners, Tribes, and local communities The City of Newport Beach works closely with MWDOC, as a member agency, to ensure imported water supply needs are met. The City also works with OCWD, as a member agency, to provide groundwater supply to its service area. As shown in Figure 4, Irvine Ranch Water District and Mesa Water District also serve portions of the City of Newport Beach. As water suppliers, all of these agencies work together with 8-39 local communities to meet water supply needs. The AMI Project will result in water savings, which benefits the region and nearby water suppliers by increasing water supply reliability by 1,569.61 AFY. 4. Striking a regulatory balance a. Reduce the administrative and regulatory burden imposed on U.S. industry and the public; This is not applicable. b. Ensure that Endangered Species Act decisions are based on strong science and thorough analysis. The proposed AMI Project will reduce imported water demand on the SWP by up to 392 AFY, making this same amount of water available for the Delta Smelt and other listed species located in the Delta habitat. The Recovery Plan for the Sacramento -San Joaquin Delta Native Fishes (November 26, 1996) includes the Delta Smelt and monitoring endangered species and potential recovery rates (the Plan is available at the following link: https://www.fws.gov/sfbaydelta/species/delta_smelt.cfm). On December 15, 2008, the Sacramento Fish & Wildlife Office issued a biological opinion (BO) on the Long -Term Operational Criteria and Plan (OCAP) for coordination of the Central Valley Project and SWP. The Service determined that the continued operation of these two water projects, as described in the plan, was likely to jeopardize the continued existence of the delta smelt and adversely modify its critical habitat. The AMI Project will provide benefits to federally -recognized endangered species by making up to 392 AFY available to the CRA and SWP habitats. The City's water supply consists 25 percent of imported water obtained from MWD through MWDOC. MWD typically blends CRA supplies with water allocated from the SWP before delivery to MWDOC and ultimately to the City. As the AMI Project seeks to offset imported water deliveries to the City, benefits also include alleviating stress on the Bay -Delta habitat. Rationing water supplies received from the Bay -Delta helps limit the ecological impact of importing water. Science concludes that 29 known species of fish once populated the estuary and currently 12 of those species are considered gone or threatened by extinction. The Bay -Delta is also home to the Delta Smelt, which is a protected species through a 2007 court order. The species' habitat, life cycle, and reproduction rates are adversely affected by water imported via the SWP. An example of this is the negative impact on the Delta Smelt, which, due to its one-year life cycle and relatively low reproductive rate, is highly susceptible to changes in the environmental conditions of its native habitat. The Delta Smelt has been considered a `canary in the coal mine' since reductions in its population are an indicator of deterioration conditions throughout the entire Delta ecosystem. It has been observed that the Delta Smelt population does better when outflow is allowed to flow downstream and create a nursery habitat for Delta smelt in Suisun Bay. With a reduction in this imported water demand, the impact on the Delta Smelt, Salmon and other species currently impacted by water pumping activities, will be alleviated to the extent of the Project. The Project improves the status of the listed species by making more water available in the Bay -Delta to support the species and their habitats. Any reduction in water use from the SWP for this region has a positive impact on the species in and around the Bay -Delta area. The AMI Project will not result in negative impacts to endangered, threatened, or candidate species and/or the critical habitats in the SWP or CRA. 5. Modernizing our infrastructure a. Support the White House Public/Private Partnership Initiative to modernize U.S. infrastructure -0 The AMI Project supports the public/private partnership between the City of Newport Beach, a public entity, and the Mueller Systems Inc., the private contractor selected to implement the proposed AMI Project. Installing new meters within the distribution system will result in savings through improved leak detection/correction. Replacing existing meters will also result in water savings when new technologies are employed. For example, AMR and AMI devices provide real time measurement to the operator and to the customer as well. This allows for improved management by the operator, more conscientious use by the customer, and improved leakage detection by both. Therefore, the Project implements a public private partnership to upgrade existing meter systems to AMI and will modernize existing water metering infrastructure. b. Remove impediments to infrastructure development and facilitate private sector efforts to construct infrastructure projects serving American needs; This is not applicable. c. Prioritize DOI infrastructure needs to highlight: 1. Construction of infrastructure 2. Cyclical maintenance 3. Deferred maintenance The AMI Project will assist in deferred maintenance of meters because it will upgrade (replace or retrofit) existing meters to AMI meters. Many of the City's meters are at replacement age and are likely erroneously registering lower water use than actual water use. Therefore, more accurate meter readings compared to aging meters will defer maintenance. Evaluation Criterion F: Implementation and Results (6 points) Subcriterion No. F.1—Proiect Planning Planning efforts are included that provide support for the proposed project. Water Conservation Plan and/or System Optimization Review (SOR) in Place The AMI Project implements the City's 2015 UWMP (June 2016) as a water conservation measure to minimize high water loss. Based on current City data, implementation of the proposed Phase 2 AMI Project will result in a reduction of water loss. The UWMP includes a Water Reduction Plan (under the Orange County 20x2020 Regional Alliance formed by MWDOC), the City's Demand Management Measures, and its Water Supply Contingency Plan. The UWMP 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. A copy of the City's 2015 UWMP is available upon request and/or may be downloaded on the City's website located at the following link: http://www.newportbeachca.gov/home/showdocument?id=58831 (1) Identify any district -wide, or system -wide, planning that provides support for the proposed project. This could include a Water Conservation Plan, SOR, Drought Contingency Plan or other planning efforts done to determine the priority of this project in relation to other potential projects. The AMI Project is identified in and is supported by the City's 2015 UWMP (June 2016), which details water use, water loss, and water conservation measures required to reduce water loss throughout the City of Newport Beach's service area. The City's 2015 UWMP includes measures for demand management and water conservation measures that support the proposed AMI Project. Quantified water loss for the FY 2014- 15 was approximately 855 AFY, which presents opportunities for improvement in the system. The City's 2015 UWMP includes Section 5 Water Supply Contingency Plan, which identifies the water supply shortage policies MWD, MWDOC, and the City have in place to respond to events including catastrophic interruption and reduction in water supply and to reduce consumption. The Water Supply Contingency Plan provides support for the proposed Project by identifying ways to conserve water and reduce water usage. Lastly, Section 4.2 Metering of the City's 2015 UWMP states that the City is currently running an Advanced Metering Infrastructure (AMI) Pilot Program. At the time, there were 100 meters scattered throughout the City with this new AMI technology. City staff monitored the information these meters provide while researching full- scale implementation feasibility. The Phase 1 AMI Project, discussed earlier, will increase the number of Pilot Program meters to 250. Information in the Pilot Program supports implementation of the Phase 2 AMI Project. (2) Describe how the project conforms to and meets the goals of any applicable planning efforts and identify any aspect of the project that implements a feature of an existing water plan(s). The AMI Project conforms to and meets the goals of the City's 2015 UWMP, including water conservation and capital improvement by replacing the City's meters with an upgraded AMI meter program. The UWMP states that in its 5 -year capital improvement program, the City plans to advance to AMI cellular technology. The AMI Project helps meet the State's AB 32 goals by reducing greenhouse gas emissions as a result of the reduction in water treatment and delivery from imported water supplies. The AMI Project will avoid GHG emissions by conserving approximately 910,067.73 lbs. of CO2/year. The AMI Project also helps to meet the goals of the California Water Plan Update 2013, the North and Central Orange County Integrated Regional Water Management Plan (IRWMP) and MWDOC's Orange County Water Reliability Study. Water use efficiency and energy efficiency are two of the main goals in all these plans that will enable the region to manage water supplies and resources for future generations. Lastly, as a member agency of MWDOC, the City is incorporated into MWDOC's UWMP. MWDOC is a member of the California Urban Water Conservation Council (CUWCC). The AMI Project supports the City's efforts to achieve MWDOC's Conservation Demand Management Measure and Best Management Practice goals as well as the statewide goals of 20 percent reduction in urban water use by 2020 as mandated by SBX7-7. The Project builds upon the City's current successes in achieving water conservation. The City strives to be an example of water use efficiency and water conservation for other water agencies that are near 100 percent dependent on imported water supplies. Subcriterion No. F.2—Performance Measures Provide a brief summary describing the performance measure that will be used to quantify actual benefits upon completion of the project (e.g., water saved or better managed, energy generated or saved). All Water and Energy Efficiency Grant applicants are required to propose a "performance measure" (a method of quantifying the actual benefits of their project once it is completed). The AMI Project will allow for accurate measurement for demands assessment, customer billing, diagnostic testing, locating and quantifying leakage, and other management needs. Installing new meters within the 8-42 distribution system will also result in savings through improved leak detection/correction. Replacing existing meters can also result in water savings when new technologies are employed. For example, AMI devices provide real time measurement to the operator and, in some cases, to the customer as well. This allows for improved management by the operator, more conscientious use by the customer, and improved leakage detection by both. Quantifying savings associated with meter installation and/or replacement requires analysis of pre- and post -installation measurements from existing meters at strategic locations within the system. The performance measures that will be used to quantify actual benefits upon completion of the AMI Project will include measures to quantify water savings, water better managed, and energy savings resulting from the installation of the newer, more technologically -advanced meters. Pre- and post -installation consumption measurements will be analyzed for all customers who are notified by the City that they have a leak and for all customers who view their flow data through the Customer Portal on the City's website. Water consumption at each of the improved meter sites where the AMI units will be installed will be monitored over a 12 -month period using monthly billing data. Post -installation water consumption for each of the AMI units will be compared against pre -installation consumption to verify water savings. Table 8 summarizes the performance measures of the AMI Project that will demonstrate and quantify actual benefits and effectiveness of the AMI Project. Water use monitoring will be provided to Reclamation throughout the reporting period and included in the final report. Water use monitoring will continue beyond the grant term to make a valid assessment of the actual water savings from this AMI Project for the life of the Project (20 years). The table below summarizes the Project Performance Measures. Table 8 Proiect Performance Measures ; AIT11 Project Pertormance Performance Measure Target Measurement Tools and MethwC Water Savings: 710.34 AFY Water consumption reported by the cellular technology Reduction in for each customer who is provided by the City with Consumption access to or who accesses independently real-time flow data produced by the new water metering units will be analyzed over an initial 12 -month period both before and after initial exposure to the data. • Post -installation water consumption data will be compared against pre -installation consumption to verify water savings. Water Better Managed: 483.58 AFY Post -installation water consumption will be measured Water Loss Reduction over a 12 -month period following AMI installation to verify water better managed. • A water loss audit will be periodically conducted. Water Savings: Water 375.69 AFY Post -installation water consumption will be measured Savings from Reduced over a 12 -month period following AMI installation to Meter Inaccuracies verify water better managed. • A water loss audit will be periodically conducted. Energy Savings From Water Water savings will be converted to energy savings using Savings: the calculation of 2,500 kWh/AF of water conserved. ; AMI Project Performance Performance Measure Target Measurement Tools and Methods 1,491,914.31 kwh/ ear Carbon Emissions 910,067.73 • Confirm the water savings resulting from the project in the Savings lbs. of "Water Savings" Project Performance Measure and CO2/year convert to carbon emissions using the calculation of from water required energy = 2,500 kWh/AF and CO2 emissions= savings 0.61 lbs. of CO2/kWh. Installing the meters will result in approximately 1,570 AFY of water saved. As part of the monthly meter reading process, City staff checks for any signs of water leaks at the meter along with a visual system check. As part of the billing process, water consumption is compared to prior months and years usage. If a leak is evident on the customer's side of the meter, the customer is notified of the leak either in person on their bill or both depending on the severity of the leak. The City conducts monthly water loss audits and system integrity, as well as conducts leak detection using in-house City staff in addition to using outside consultants for leak detection services on an as -needed basis to detect and repair distribution system leaks. 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. The following studies provide baseline data for the AMI Project: The City's AMI pilot program and the City's 2015 Urban Water Management Plan, which includes water conservation by replacing the City's meters with an upgraded AMI meter program and the complete AWWA audit. Implementation of the AMI Project in the neighboring water service area of Laguna Beach County Water District has resulted in significant water savings and the EMWD's research results prove tremendous savings through the Customer Portal, as described in Evaluation Criterion A: Quantifiable Water Savings. The City has a clear baseline of historical water distribution and billing data to compare with current and future records once AMI has been installed and the customer portal has been put into place. Analytical software is included as part of the AMI Project proposal, and this software will assist the City in analyzing the data collected as part of the AMI Project. It is the goal of the City to equip City employees with the adequate tools and capability to not only monitor water production and consumption but also to analyze and evaluate solutions and follow-up actions for all factors that may contribute to water loss and decreased water use efficiency. Similarly, it is the goal of the City to provide tools and resources to the customers so that they can comprehensively understand their water usage patterns and have access to regular feedback on the effectiveness of any activities and efforts to reduce water usage in their homes and businesses. Evaluation Criterion G: Nexus to Reclamation Project Activities (4 points) 1. How is the proposed project connected to Reclamation project activities? Does the applicant receive Reclamation project water? Is the project on Reclamation project lands or involving Reclamation facilities? Is the project in the same basin as a Reclamation project or activity? Will the proposed work contribute water to a basin where a Reclamation project is located? The proposed AMI Project is associated with the Colorado River Basin, and the City receives water from MWD via MWDOC, which currently relies on the CRA and the SWP as its primary sources of water. The AMI Project itself does not directly involve Reclamation project lands, Reclamation facilities or in a common basin, but it will increase the availability of the overall water supply through improvements in water use efficiency and conservation and ultimately benefit the Colorado River Basin. Reclamation manages the Colorado River system from which MWD imports water. The City purchases 25 percent of its supply imported from the Colorado River and from northern California via the SWP. Water savings associated with the AMI Project translate to more water remaining in these two fragile systems. The proposed AMI Project directly supports Reclamation's current efforts to further advance water use efficiency and conservation. The AMI Project benefits Reclamation water reliability activities because it reduces imported water supplies from the Colorado River and northern California, the Bay -Delta. The water savings attained will be the result of reduced imports from the Bay -Delta and the Colorado River, thereby contributing water to the Colorado River Basin. By reducing the amount of water imported, this water in effect remains in the basin from which it originates or is made available to meet demands in other areas of the State. 2. Will the project benefit any Tribes? The AMI Project will indirectly help Reclamation meet trust responsibilities to Tribes as there is no direct impact on tribes in the Project area. However, the Project may help Reclamation meet trust responsibilities in the SWP or CRA areas since the Project will be reducing demand on these sources. Any increase in water reliability and greater availability in overall water supply resulting from water use efficiency efforts would help Reclamation in meeting the federal Indian trust responsibility, a legally enforceable fiduciary obligation on the part of the United States to protect tribal treaty rights, lands, assets, and resources, to the tribes. Evaluation Criterion H: Additional Non -Federal Funding (4 points) Up to 4 points may be awarded to proposals that provide non -Federal funding in excess of 50 percent of the project costs. State the percentage of non -Federal funding provided. The Non-federal cost -share is 89.112 percent to be provided through cash contributions, shown as follows: $ 8,188,009 Non -Federal Funding $ 9,188,009 Total Project Cost = 89.112 percent Project Budget The project budget includes: (1) Funding plan and letters of commitment (2) Budget proposal (3) Budget narrative The complete AMI Project Budget includes a Funding Plan, Budget Proposal, Budget Narrative, and the SF 424 Budget Form. 8-45 Funding Plan Non -Federal Share of Project Costs The non -Reclamation share of the AMI Project costs will be funded through the City's Reserves Fund, which is funded by City Potable Water Rates and Charges, including costs and services covered by the City water customers' bills. Cost Share Contribution: The estimated City contribution (non -Federal subtotal) is $8,188.009. The City will provide its cost share in monetary (cash) contributions. Any Costs Incurred Before the Anticipated Project Start Date: The City does not anticipate any costs prior to the Project start date, anticipated after September 30, 2018. Funding Partners: None Funding Requests from other Federal Partners: No other funding has been requested or received from other Federal partners. Pending Funding Requests: There are no pending funding requests for the AMI Project. Table 9 summarizes the AMI Project funding sources: TABLE 9. Summary of Non -Federal and Federal Fundina Sources Fundina Sources* Fundin Amount Non -Federal Entities 1. City of Newport Beach — Reserves $ 8,188,009 Non -Federal 1 $ 8.188.009 Other Federal Entities 0 1. None $ 0 Other Federal Subtotal 0 Reauested Reclamation Fundina: $1,000.000 Total Proiect Fundina: $ 9,188,009 *No In -Kind funding is proposed or included. Budget Nroposa The City will fund approximately 89.112 percent of the AMI Project costs, and the City is requesting approximately 10.884 percent ($1,000,000) of the total AMI Project costs as shown in Table 10. Table 10 provides the Budget Detail by cost categories (Budget Item Description). Budget riarrative Salaries and Wages The Project Manager is Steffen Catron. Mr. Catron is the Acting Municipal Operations Director for the City of Newport Beach. His budgeted time includes a direct labor rate of $72.55/hour, which does not include fringe benefits. A total of 60 hours at a total cost of $4,353 is estimated to manage the Project over the allotted 3 -year timeframe. The labor rate is in the City of Newport Beach 2018 Job Class -Range Alpha R1=0 Report effective 12/31/2011 and last revised date 3/27/2018. Mr. Catron will be involved in Task 1 — Project Management and will oversee the Contractor's work. TABLE 10. City of Newport Beach AMI Project Budget Proposal BUDGET ITEM DESCRIPTION COMPUTATION 10.8837510 Reclamation 11 89.116249% Recipient TOTAL COST Price/Rate Unit I Quantit SALARIES AND WAGES Steffen Catron, Project Manager - Reporting $72.55 Hour 1 60.00 11 $ 474 $ 3,87911 $ 4,353 Subtotal 11 $ 474 $ 3,87911 $ 4,353 FRINGE BENEFITS - See proposal in official file for detailed calculations All staff are Full Time Employees (25.09%) 11 $18.20 1 Hour 1 60.0011 $ 119 $ 973 $ 1,092 Subtotal 11 $ 119 $ 973 $ 1,092 EQUIPMENT - Leased Equipment use rate + hourly wage/salary x est. hours for assisted activity—Describe equipment to be purchased, unit rice # of units for all a u' ment to be Purchased or leased for assisted activi : Do not list contractor suDDHed e u' ment here. Costs included under Contractual Subtotal $ - $ - $ SUPPLIES/MATERIALS - Describe all major types of supplies/materials, unit price, # of units, etc., to be used on this assisted activity. Costs included under Contractual $ $ $ Subtotal $ - $ - $ - CONTRACTUAL/ CONSTRUCTION Mueller Systems Contract $ 951,713 $ 7,792,634 $ 8,744,347 Subtotal $ 951,713 $ 7,792,634 $ 8,744,347 OTHER Environmental Review by Reclamation 51,000.00 Lumpsum 1 $ 109 $ 891 $ 1,000 Construction Contingency (5% of total construction cost) 5% Percent $ 8,744,347 $ 47,585 $ 389,632 $ 437217 Subtotal $ 47,694 $ 390,523 $ 438,217 TOTAL DIRECT COSTS: 1 11 $ 1,000,00011 $ 8,188,00911 $ 9,188,009 INDIRECT COSTS - Basis TOTAL ESTIMATED PROJECT COSTS: $ 1,000,000 $ 8,188,009 $ 9,188,009 Fringe Benefits Fringe benefits are charged at a rate of $18.20 per hour for the Project Manager per the City of Newport Beach approve fringe benefit rate. A total fringe benefit of $1,092 has been included in the budget. Travel No travel costs are included for the AMI Project. Equipment The equipment will be furnished and installed under a construction contract and is therefore included in the Contractual/Construction cost estimate. There will be no additional equipment required outside of the Contractor -supplied equipment. A detailed list of work and related equipment provided under that Contract is shown in Table 11. E Equipment installed as part of the AMI Project includes the AMI Network Infrastructure and complete communication system — collectors and repeaters, and approximately 26,309 AMI meters and meter box lids. The communication system collects the meter consumption reads on an hourly basis, along with the meter reads from repeaters, and then wirelessly transmit the information to a web -based center where the data is tabulated, stored, and made available to the end user. The Customer Portal will allow the City's water customers to have real-time access to their account information and gives them the ability to set up water usage alerts, including leak reports and water budgeting, on an internet-based platform. Materials and Supplies Materials and Supplies are included under Contractual and included in Table 11. Contractual/Construction Through a competitive bid process, a qualified Contractor, Mueller Systems (Contractor), was selected for the AMI Project implementation. Total Contractual/Construction costs for the Project are estimated at $8,744,347, as provided by the Contractor, and as included in the Cost proposal in Exhibit A. The budgeted costs for Contractual were determined to be fair and reasonable based on contractor estimates and experience with projects and estimates obtained from neighboring water districts for similar AMI upgrade projects. Contractor Task Budget estimate detail is discussed below and is shown in Table 11. Contractual activities to be performed by Mueller Systems include: 1) project management; 2) procurement and installation of the network communication system and training; 3) public outreach, procurement and installation of the AMI meters; 4) AMI software integration for the Mi.Host and customer portal; and 5) hosting the server site for AMI Network data for five years. Environmental and Regulatory Compliance Costs Environmental compliance costs in the amount of $1,000.00 are included under "Other" in the budget to cover the following: • Cost incurred by Reclamation to determine the level of environmental compliance required forthe Project. • Cost incurred by Reclamation or the City to prepare any necessary environmental compliance documents or reports. • Cost incurred by Reclamation to review any environmental compliance documents prepared by the City. • Cost incurred by the City in acquiring any required approvals or permits, or in implementing any required mitigation measures. The AMI Project involves an upgrade to existing meters and should pose no impact to the surrounding environment. Work will be performed on property that is considered already disturbed, and no further environmental requirements are needed. There are no required permits anticipated for the AMI Project. All of the AMI Project work will be conducted at current meter locations and City property. All Project -related approvals will be handled by the City and will be executed in a timely and efficient manner. Final approval from the City Council would be required prior to proceeding with the AMI Project. TABLE 11. Contractual Construction Costs TASK BUDGET ITEM DESCRIPTION COMPUTATION TOTAL COST Price/Rate Unit Ouantitv Task 3 Procurement and Installation of AMI System Project Management (80% time) $ 34.31 Hour 4,966 $ 170,393.60 Subtask 3. Installation of AMI Infrastructure and Training In Support of AMI System MI Network Infrastructure Collectors $ 4,000.00 Each 14 $ 56,000.00 Installation -Collectors $ 32.71 Hour 642 $ 21,000.00 Repeaters $ 960.00 Each 13 $ 12,480.00 Installation -Repeaters $ 32.71 Hour 596 $ 19,500.00 Collector-XXR $ 4,975.00 Lumpsum - n/c Installation-XXR Tower $11,945.00 Lumpsum - n/c MI Network and Deployment Tools RF Installation with Hand -Held Programmer $ 32.71 Each 293 $ 9,600.00 Professional Services - City Staff Training Training and Documentation $ 3,000.00 Days 3 $ 9,000.00 Propagation Study $ 4,500.00 Lumpsum - n/c Subtask 3.2 Meter Equipment Procurement Water Meters + Electronic Registers 5/8" Meters $ 127.00 Each 16,917 $ 2,148,459.00 3/4" Meters $ 160.00 Each 4 $ 640.00 1" Meters $ 180.00 Each 7,259 $ 1,306,620.00 1-1/2" Meters (LOW FLOW) $ 429.26 Each 478 $ 205,186.28 1-1/2" Meters (HIGH FLOW) $ 455.27 Each 75 $ 34,145.25 2" Meters (LOW FLOW) $ 525.20 Each 1,139 $ 598,202.80 2" Meters (HIGH FLOW) $ 531.93 Each 305 $ 162,238.65 Water Meter Retrofit Registers with Endpoint 3" Neptune Tru/Flo Compound Meters $ 258.82 Each 32 $ 8,282.24 3" Neptune HPT Compound Meters $ 129.41 Each 11 $ 1,423.51 4" Neptune Tru/Flo Compound Meters $ 258.821 Each 52 $ 13,458.64 4" Neptune HPT Compound Meters $ 129.41 Each 9 $ 1,164.69 4" Neptune Proctectus III Compound Meters $ 258.82 Each 1 $ 258.82 6" Neptune Tru/Flo Compound Meters $ 258.62 Each 13 $ 3,362.06 6" Neptune HPT Compound Meters $ 129.41 Each 3 $ 388.23 6" Neptune Proctectus III Compound Meters $ 258.82 Each 2 $ 517.64 8" Neptune HPT Compound Meters $ 129.41 Each 7 $ 905.87 8" Neptune Proctectus III Compound Meters $ 258.82 Each 2 $ 517.64 Water Meter Lids 3/4" DFW Meter Lid $ 30.88 Each 16,921 $ 522,520.48 1" DFW Meter Lid $ 40.73 Each 7,259 $ 295,659.07 2" DFW Meter Lid $ 71.78 Each 1,972 $ 141,550.16 Other Water Meter Related Equipment 10,000 Meter Bushings $ 13.00 Each 10,000 $ 130,000.00 Mi.node Radio w/ Nicor for Reg. Retro $ 60.00 Each 757 $ 45,420.00 Through the Lid MLnode Mounting Brackets $ 3.95 Each 26,2861 $ 103,829.70 • Subtask 3.3 Installation ofAMI Meters Qk $32.71/hour Installation of Water Meter, Register, and Endpoint 5/8" Meters $ 75.00 Meter 16,917 $ 1,268,775.00 3/4" Meters $ 75.00 Meter 4 $ 300.00 1" Meters $ 75.00 Meter 7,259 $ 544,425.00 1-1/2" Meters $ 365.00 Meter 553 $ 201,845.00 2" Meters $ 365.00 Meter 1,444 $ 527,060.00 Water Meter Retrofit with Endpoint 3" Neptune Tru/Flo Compound Meters $ 158.81 Meter 32 $ 5,081.92 3" Neptune HPT Compound Meters $ 158.81 Meter 11 $ 1,746.91 4" Neptune Tru/Flo Compound Meters $ 158.81 Meter 52 $ 8,258.12 4" Neptune HPT Compound Meters $ 158.81 Meter 9 $ 1,429.29 4" Neptune Proctectus III Compound Meters $ 158.81 Meter 1 $ 158.81 6" Neptune Tru/Flo Compound Meters $ 158.81 Meter 13 $ 2,064.53 6" Neptune HPT Compound Meters $ 158.81 Meter 3 $ 476.43 6" Neptune Proctectus III Compound Meters $ 158.81 Meter 2 $ 317.62 8" Neptune HPT Compound Meters $ 158.81 Meter 7 $ 1,111.67 8" Neptune Proctectus III Compound Meters $ 158.81 Meter 2 $ 317.62 Water Meter Lids 3/4" DEW Meter Lid $ 3.00 Each 16,921 $ 50,763.00 1" DEW Meter Lid $ 3.00 Each 7,259 $ 21,777.00 2" DFW Meter Lid $ 3.00 Each 1,972 $ 5,916.00 Meter Lid Drilling $ 10.00 Lumpsum - n/c Task 4 Final Testing and Implementation Project Management (20% time) $ 34.31 Hour 1,2421 $ 42,598.40 AMI/MDMS System Integration $24,000.00 Lumpsum - n/c Annual AMI Headend Software Hosting Fee $37,200.00 Each 1 $ 37,200.00 Contractual Total 1 $8,744,346.65 The City has filed a Categorical Exemption per CEQA Title 14 (California Code of Regulations), Chapter 3, Article 19, Section 15302c for the Project, as shown in Figure 7. It is anticipated that a Categorical Exclusion (CE) or Finding of No Significant Impact (FONSI) under NEPA will be issued by Reclamation given the nature of the Project that includes simply replacing existing meters with upgraded AMI meters. A CE or FONSI is anticipated since the AMI Project will likely not have a significant effect on the human environment and, therefore, neither an environmental assessment nor an environmental impact statement would be required. In addition, neighboring water suppliers, the Laguna Beach County Water District and South Coast Water District, were awarded a $300,000 grant via cooperative agreement with Reclamation for their Advanced Metering Infrastructure Projects under the WaterSMART WEEG FOA for FY 2016, and 2017, respectively. Per their grant agreements, the total budget for Reclamation's Environmental Compliance Review was $1,000. Based on our experience and these facts from nearby water suppliers, we have budgeted at total of $1,000 for Environmental Compliance Costs. The amount of the line item is based on the actual expected environmental compliance costs for the project, including Reclamation's cost to review environmental compliance documentation. 8-50 Figure 7 Notice of ExclnpLion CEQA Notice of Exemption Filed r-r-weea kn �ujlmli¢IaI Racares, Orange County "ugh M II III II � H gr Jill III� HH NO FEE *� R❑ i7 1 O❑ 5 R ���4 � i I� P 2018850004491:04 pm 05M1118 S2a eA= zoi 0.80 "-Go 0.00 0.44 OrGO o.oO 4.00 O.Oq To: county Clerk From: City of Newport Eleacfi county of Change 949 West 16" srnmt. P -O. Box 238 Newport Beach, CA 92663 Santa Ana, CA 927(12 (949) 718-3402 (714) &34-2500 Project Titk- Acl%,xxed Metering In€rastructum Implcrnomalion Pmgram Project Lacatlon - Specitie: The project local j" wi l l be City-wide, Project Lucalion =City. City ofNerw•port Beach, California Project Location - Cauityt Orange Des"Iplloa.. of N hture, i'xrpose, xnd Remeticia ries of Pro]act: rorthe benefitofthe ratepayers thuare served by City ofl4ewgort Beach, the project will retrofit and+or replace 26,309 Existing water meters wish an AM! fixed- baaw network syetcrrt that will autornatical ly col lett and store hourly consumption data, aiding in water comcrvation sad water use of lr.0 nry, improved walcr managnmcnt, cncrgy sayings, and reduced carbon emissions. Nome tfPublie Agency Approving Projecl. City ofNewxporl Reach Nsmgr tf Person o AVncy C*rryius Out Project: City of Newport Beach Exempt Statwt Categorical Exemptinrtper CEQATitle IA (Califomi$Code afRi%ulalions), Chap¢er3,At1f4,le 19,Section 153020. ReAsaos why project it exemptz This work is replacement ofexisting infrastruclu: a at list saint Iarat'sovs with substantial ly the same purpose as the infrwmwntre being replaced. Lead Agency Cont2cl Person. Stcffcn Cab -on Area Codefl'elephaoclExtensinnt 949-719-3402 if fEl,d by applicwnf: 1. Attach a certified docurnent of exemption finding. 2. Lias a Nknica of Exemption been f Lod by the ipubl icjwaagency approving the proj' 40�— Signature: Date. 1 ( 6 Title, Proiect Manaeer_ [ igsed by Lead Agency r ] Signed by App ficant FILED MAY a 1 2818 HUGk NGVfENrCLERK-RLCORDER BY: ilk a ..nEnf- Other Expenses Date received for filing as ¢PR; POSTED MAY Q 1 2018 HUGH NGUYE'r. CLf/�z:RH (-RECOROFR BY: �J UE:FfJt1' Environmental Compliance Costs are included under "Other" Expenses, as described above. Indirect Costs No indirect costs are included in this proposal. 8-51 Total Costs The AMI Project total cost is proposed at $9,188.009. Budget Form – SF -424C, Budget Information – Construction The City has completed the SF -424C, Budget Information—Construction Programs form, submitted separately from this narrative. Environmental and Cultural Resources Compliance Answer the following questions to the best of your knowledge. If any question is not applicable to the project, please explain why. (1) Will the proposed project impact the surrounding environment (e.g., soil [dust], air, water [quality and quantity], animal habitat)? Briefly describe all earth -disturbing work and any work that will affect the air, water, or animal habitat in the project area. Explain the impacts of such work on the surrounding environment and any steps that could be taken to minimize the impacts. No, the AMI Project involves an upgrade to existing meters and should pose no impact to the surrounding environment. The work will be performed on property that is considered already disturbed, and no further requirements are needed. It is anticipated that a Categorical Exemption per CEQA Title 14 (California Code of Regulations), Chapter 3, Article 19, Section 15302c and a Categorical Exclusion or Finding of No Significant Impacts under NEPA will be required given the nature of the Project that includes simply replacing existing meters with upgraded AMI meters. A Categorical Exclusion seems appropriate since the AMI Project will likely not have a significant effect on the human environment and, therefore, neither an environmental assessment nor an environmental impact statement would be required. Correspondence with Doug McPherson (Environmental Protection Specialist, Bureau of Reclamation, Southern California Area Office) confirmed that AMI Projects typically receive a Categorical Exclusion under NEPA. (2) Are you aware of any species listed or proposed to be listed as a Federal threatened or endangered species, or designated critical habitat in the project area? If so, would they be affected by any activities associated with the proposed project? No known species listed or proposed to be listed as a Federal endangered or threatened species, or designated critical habitats are within the AMI Project area. (3) Are there wetlands or other surface waters inside the project boundaries that potentially fall under CWA jurisdiction as "waters of the United States?" If so, please describe and estimate any impacts the project may have. The AMI Project will upgrade (replace and/or retrofit) meters throughout the City of Newport Beach. Therefore, the Project boundaries are entirely within the City of Newport Beach, which includes the Upper Newport Bay (known to locals as "The Back Bay"). Upper Newport Bay is a large coastal wetland (an estuary) in Newport Beach, Southern California and a major stopover for birds on the Pacific Flyway. Dozens of species, including endangered ones, can be observed here. Upper Newport Bay Nature Preserve and Ecological Reserve represent approximately 1,000 acres of open space. The Upper Newport Bay was 8-52 purchased by the State of California in 1975 for its Fish and Wildlife Department's Ecological Reserve System. In 1985 the upper west bluffs and lands surrounding the bay became part of an Orange County regional park, which offers outdoor activities such as bird -watching, jogging, bicycling, hiking, and kayaking. An organization known as the Newport Bay Conservancy (NBC) provides volunteers to answer visitors' questions and guide them through the various activities. The bay is recognized for protection by the California Bays and Estuaries Policy. The main tributary of the Upper Newport Bay is San Diego Creek, which flows past the San Joaquin Wildlife Sanctuary before entering the bay. The bay is connected to the Pacific Ocean through the lower Newport Bay, the harbor of Newport Beach. The AMI Project will have a positive impact on the Back Bay by conserving water and reducing leaks, thereby reducing runoff and nonpoint source pollutants that would otherwise make its way into to the Back Bay. The AMI Project includes retrofitting or replacing existing meters and will have no negative impact on the Back Bay; the Project may contribute to its protection by reducing the amount of nonpoint source pollution entering its waters. (4) When was the water delivery system constructed? The City of Newport Beach installed approximately 1 mile of pipe in 1900 and another 10 miles of pipe between 1925-1930, but installation for the majority of the City's water system did not start until 1946. (5) Will the project result in any modification of or effects to, individual features of an irrigation system (e.g., headgates, canals, orflumes)? If so, state when those features were constructed and describe the nature and timing of any extensive alterations or modifications to those features completed previously. No, the AMI Project will not result in any modification of or effect to individual features of an irrigation system. (6) Are any buildings, structures, or features in the irrigation district listed or eligible for listing on the National Register of Historic Places? A cultural resources specialist at your local Reclamation office or the State Historic Preservation Office can assist in answering this question. The following are listed on the National Register of Historic Places within the City of Newport Beach: Balboa Inn, Balboa Pavilion, Bank of Balboa — Bank of America, Wild Goose (yacht), Lowell Beach House and the Crystal Cove Historic District. Correspondence with Doug McPherson (Environmental Protection Specialist, Bureau of Reclamation, Southern California Area Office) confirmed this list and that AMI Projects typically are included as item # 25 in Reclamation's list of undertakings that have no potential to cause effects on historic properties. (7) Are there any known archeological sites in the proposed project area? No, there are no known archeological sites in the AMI project area. (8) Will the project have a disproportionately high and adverse effect on low income or minority populations? The AMI Project will not have a disproportionately high and adverse effect on low income or minority populations. The AMI Project has the potential to provide positive monetary benefits to low income and 8-53 minority populations by identifying water inefficiencies within their community, which, after installation of AMI, will potentially decrease the costs of water to that population as a result of water savings. (9) Will the project limit access to and ceremonial use of Indian sacred sites or result in other impacts on tribal lands? The AMI Project will not limit access to and ceremonial use of Indian sacred sites or result in other impacts on tribal lands. (10) Will the project contribute to the introduction, continued existence, or spread of noxious weeds or non- native invasive species known to occur in the area? No, the AMI Project will not contribute to the introduction, continued existence, or spread of noxious weeds or non-native species known to occur in the area. Required Permits or Approvals State whether any permits or approvals are required and explain the plan for obtaining such permits or approvals. There are no required permits anticipated for the AMI Project. All of the AMI Project work will be conducted at current meter locations and City property. All Project -related approvals will be handled by the City and will be executed in a timely and efficient manner. Final approval from the City Council would be required prior to proceeding with the AMI Project. Letters of Support Include letters from interested stakeholders supporting the proposed project as an appendix. There is widespread support for the AMI Project from MWDOC and OCWD, as it aims to enhance water reliability for the region. Letters of support were provided by MWDOC and OCWD and are included in Exhibit B. Official Resolution An official resolution of the Newport Beach City Council will be adopted at their meeting scheduled for May 22, 2018. A copy of the draft resolution is included in Exhibit C. The official adopted resolution will be submitted within 30 days of the grant application deadline. The resolution verifies the City's legal authority to enter into an agreement; that the City Council has reviewed and supports submittal of this application; the capability of the City to provide the amount of funding and in-kind contributions specified in the Funding Plan; and that the City will work cooperatively with Reclamation to meet established deadlines for entering into a cooperative agreement. Exhibits Exhibit A — Maps and Mueller Systems Cost Proposal Exhibit B — Letters of Support Exhibit C — Resolution Exhibits are attached on the following pages. 8-54 EXHIBIT A - MAPS AND MUELLER SYSTEMS COST PROPOSAL 8-55 A. 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L . . . - r1b) FjjPI OV T%VL...tL KPA R -A�4W 0 City of Newport Beach GIS Division Sources: Esri, HERE, Garmin, Intermap, increment P Corp., GEBCO,-.USGS, FAO, NPS, NRCAN, GeoBas(%,, 1,GNApril 03,2018, Kadaster F METI, Esri China (Hong Kong), swisstopo, @ OpenStreetMap contributors, and the GIS User Community NIP K. _ _ Rr Fi L Ft I 4121 ; ..' . -F i., ... r R _J + a - T.•'r..U. ;.' . i [ # • }%+ , .4 . # 7N 14 - . � . � t - _ � s �� .�R f {x03 �B �l t' w ". r7� 3} +ti }y, _ - • � " � �, , y ,�y5� I rf � wIYF .� } • j � ]A •6 IL.� E ii � �- � " ]�' �-i - - - v e17 I IF 49 41-1 OR _ r i # .. F � _ � � �+ � — `�JF'J1� ��y s'r_�'�aa }. � � ` @+� � `� f• � _ {+• y� r'- -.1 . } . . _. 2 -I 1 .{ gt•"t�'Yt '"1*�.+.' � f 0 �L' �+i�+� f � �._• F_`6 .. '#�i�}a � fi "•1}_ F //JJ.I s7' .L V.V } , r� i A,• v {y a l F' " ` - 1 y�F.,yYi-.i r - si f 4 _ ..ki]'. V��w.. 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I L 4 40 or ko _N�yp[X1 9oaC#1+P3 €�: + .1_ f s+� d i r� AL r .• Aw , Jn am In AL54 a ■M1" I'j+ 5 F .. ;l5 ' 530 - 1WIS %4/' • ,. • fig- ."Y 'k A :'*�, 'I�s�•: ���� dr L Equipment Type Antenna (XR-R) Data Collector (XR) CR) Repeater (ACXR) City Boundary ot _ of - ••Beach GIS Division a,��,C�_W uuu .,.,i*� _ a o ���MEo l�_JBGllo D apmm@aft olf f a o 0 UA �111OPC UL S o PJOo Gia D o o o - ' o /`�-o [�Q. �`April NEW— .� -f - City of Newport Beach Attachment 5 - Cost Proposal Instructions PROJECT COST PROPOSAL The City identifies two potential implemenation schedules: - Implemenation Plan #1- 6 month pilot program as outlined in the Scope, followed by a 12-18 month full implementation. - Implementaiton Plan #2 - 6 month pilot program as outlined in the Scope, followed by a 3 year full implementation. Five Separate Tabs covering different cost areas of the proposal: a - AMI Equipment & Services b - Meter Equipment c - Installation d -MDMS e - Optional Items COST PROPOSAL AND HOURLY RATES A. The Contractor agrees that for requested and/or required changes in the scope of work, including additions and deletions on work not performed, the Contract Sum shall be adjusted in accordance with the following unit prices, where the City elects to use this method in determining costs. B. Contractor is advised that the unit prices will enter into the determination of the contract award. Unreasonable prices may result in rejection of the entire bid proposal. The unit price quoted by the Contractor shall be those unit prices that will be charged or credited for labor be provided regardless of the total number units and/or amount of labor required for added or deleted items of work. All work shall be performed in accordance with specifications described in the RFP. D. In the event the City moves forward with the Implementation Plan # 2 , the contract will include language for a annual rate adjustment based on the Consumer Price Index. Upon the first July, following the first anniversary of the Effective Date [July 20171 and upon each July thereafter, the billing rates set forth in Exhibit B Schedule of Billing Rates ("Billing Rates") shall be adjusted in proportion to changes in the Consumer Price Index, subject to the maximum adjustment set forth below. Such adjustment shall be made by multiplying the Billing Rates in Exhibit B by a fraction, the numerator of which is the value of the Consumer Price Index for the calendar month three (3) months preceding the calendar month for which such adjustment is to be made, and the denominator of which is the value of the Consumer Price Index for the same calendar month immediately prior to Effective Date. The Consumer Price Index to be used in such calculation is the "Consumer Price Index, All Items, 1982-84=100 for All Urban Orange County Striping Service, Inc. Consumers (CPI -U)", for the Los Angeles -Riverside -Orange County Metropolitan Area, published by the United States Department of Labor, Bureau of Labor Statistics. If both an official index and one or more unofficial indices are published, the official index shall be used. If Complete Each Tab: • Proposer to populate the following columns accordingly: • Item/Service - note that certain item information is pre -populated; however, Proposer can modify/add Items/Services accordingly. Quantity- note that meter related quantities are pre -populated Unit Price • Extended Price - this column is set to calculate automatically; however, Proposer must verify Equipment Lead Time (in Weeks) - specify the expected lead time required to receive equipment Notes/Comments- provide clarification/explanation accordingly • Proposer to add anew category if required Pricing Terms Payment Terms and Discount —Terms of payment are 2% thirty days after invoice date; net amount due thirty-one days after invoice date. Taxes — Pricing does not include sales or other taxes. Freight — All shipments are F.O.B. point of shipment with freight allowed on each order having a net value of $500 or more. Minimum order value is $250. Warehousing — Is to be provide per the RFP documents and Addedumns by the City of Newport Beach for the duration of this project. Meters & AMR/AMI hardware — Pricing is valid for sixty (60) months. At the conclusion of initial contract period, and prior to the commencement of the next contract year or any subsequent contract extension period, Mueller Systems may request unit price increases. The price increase shall be the original purchase price plus the United States Department of Labor, Bureau of Labor Statics Producer Price Index (PPI) for Totalizing fluid meters and counting devices Series Id: PCU334514334514, 12 month Percent Change to year one. Software support, maintenance, hosting and non -hosting — Pricing is valid for sixty (60) months. At the conclusion of initial contract period, and prior to the commencement of the next contract year or any subsequent contract extension period, Mueller Systems may request unit price increases. The price increase shall be the original purchase price plus the United States Department of Labor, Bureau of Labor Statics Producer Price Index (PPI) for Data processing and related services, Hosting, ASP and other IT infrastructure provisioning services Series Id: PCU5182105182105, 12 month Percent Change to year one. Contractual Language Disclaimer Contractual language provided is generally acceptable; however, it is the intent of Mueller Systems, if selected, to cooperate with the The City of Newport Beach, CA to find mutually agreeable contract terms covering the entire AMI project and system, including target dates, error corrections, clarifications, omissions, etc. WarrantV/Bond Disclaimer Any bond provided is excluded from the standard warranty terms. Any warranty item in excess of one year for this project must be specified as pass-thru warranties direct from Mueller Systems to the owner and not made a subject of the final contract or associated bonds. No bonding costs are included in pricing. 8-59 Tab A- AMI Equipment & Services AMI Network Infrastructure Collectors Installation- Collectors Repeater Installation- Repeaters Collector- XXR Installation- XXR Tower AMI Network and Deployment Tools RF installation hand-held Professional Services Training and Documentation AMI/MDMS System Integration Propagation Study Ongoing System Costs Annual AMI Headend Software Hosting Fee Tab B- Meter Equipment Water Meters + Electronic Registers 5/8" Meters 3/4" Meters 1" Meters 1-1/2" Meters (LOW FLOW) 1-1/2" Meters (HIGH FLOW) 2" Meters (LOW FLOW) 2" Meters (HIGH FLOW) Water Meter Retrofit Registers with Endpoint 3" Neptune Tru/Flo Compound Meters 3" Neptune HPT Compound Meters 4" Neptune Tru/Flo Compound Meters 4" Neptune HPT Compound Meters 4" Neptune Proctectus III Compound Meters 6" Neptune Tru/Flo Compound Meters 6" Neptune HPT Compound Meters 6" Neptune Proctectus III Compound Meters 8" Neptune HPT Compound Meters 8" Neptune Proctectus III Compound Meters Water Meter Lids 3/4" DFW Meter Lid 1" DFW Meter Lid 2" DFW Meter Lid Other Water Meter Related Equipment 10,000 Meter Bushings Mi.node Radio w/ Nicor for Reg. Retro Through the Lid Mi.node Mounting Brackets City of Newport Beach Cost Proposal Costs Remainina After POP Implementation Plan 1 Implementation Plan 2 Equipment Lead Time (in Quantity Unit Price Extended Price Unit Price Extended Price weeks) Notes/Comments 14 $ 4,000.00 $ 56,000.00 $ 4,000.00 $ 56,000.00 4 Mi.Hub (Reduced Qty - Bid no tower) Customer would like to use Tower Prop 14 $ 1,500.00 $ 21,000.00 $ 1,500.00 $ 21,000.00 4 Mi.Hub Install (Reduced Qty - Bid no tower) Customer would like to use Tower Prop 13 $ 960.00 $ 12,480.00 $ 960.00 $ 12,480.00 4 Mi.Repeater (Reduced Qty - Bid no tower) Customer would like to use Tower Prop 13 $ 1,500.00 $ 19,500.00 $ 1,500.00 $ 19,500.00 4 Mi.Repeater Install (Reduced Qty - Bid no tower) Customer would like to use Tower Prop 75 $ 4,975.00 $ - $ 4,975.00 $ - 4 Added due to customer wanting to use tower prop 1,139 $ 11,945.00 $ $ 11,945.00 $ 4 Added due to customer wanting to use tower prop 2 1 $ 4,800.00 $ 9,600.00 $ 4,800.00 $ 9,600.00 4 1 Mi.Tech 3 $ 3,000.00 $ 9,000.00 $ 3,000.00 $ 9,000.00 $ 2,148,459.00 Recommended 3 days. Each additioanl day $3000 $ 2,148,459.00 $ 24,000.00 $ - $ 24,000.00 $ - 5/8" X 3/4" 420 Bronze, PB, Solid State digital Reg with Mi.node Radio Tyler/ MUNIS or other provider $ 160.00 $ 4,500.00 $ $ 4,500.00 $ $ 160.00 $ 640.00 -1F7$37,200.00 $ 37,200.00 1 $ 37,200.00 $ 37,200.00 5 year contracted price (price held for 5 years 16,917 $ 127.00 $ 2,148,459.00 $ 127.00 $ 2,148,459.00 4 5/8" X 3/4" 420 Bronze, PB, Solid State digital Reg with Mi.node Radio 4 $ 160.00 $ 640.00 $ 160.00 $ 640.00 4 3/4" 435 Bronze, Solid State Digital Reg with Mi.node Radio 7,259 $ 180.00 $ 1,306,620.00 $ 180.00 $ 1,306,620.00 4 1" 452 Bronze, Solid State Digital Reg with Mi.node radio 478 $ 429.26 $ 205,186.28 $ 429.26 $ 205,186.28 4 11/2" 562 Bronze Meter with Solid State Reg and Mi.node Radio 75 $ 455.27 $ 34,145.25 $ 455.27 $ 34,145.25 4 11/2" MVR 100 Bronze Meter 2 bolt flange in standard lay length and Mi.node Radio 1,139 $ 525.20 $ 598,202.80 $ 525.20 $ 598,202.80 4 2" 572 Bronze Meter with Solid State Reg and Mi.node 305 $ 531.93 $ 162,238.65 $ 531.93 $ 162,238.65 4 2" MVR 160 Bronze Meter 2 bolt flange in standard lay length and Mi.node Radio 32 $ 258.82 $ 8,282.24 $ 258.82 $ 8,282.24 4 3" Neptune TruFlo Compound E -Coder Retrofit Registers w/3' Nicor Connector, CF 11 $ 129.41 $ 1,423.51 $ 129.41 $ 1,423.51 4 3" Neptune HPT E -Coder Retrofit Register w/3' Nicor Connector, CF 52 $ 258.82 $ 13,458.64 $ 258.82 $ 13,458.64 4 4" Neptune TruFlo Compound E -Coder Retrofit Registers w/3' Nicor Connector, CF 9 $ 129.41 $ 1,164.69 $ 129.41 $ 1,164.69 4 4" Neptune HPT E -Coder Retrofit Register w/3' Nicor Connector, CF 1 $ 258.82 $ 258.82 $ 258.82 $ 258.82 4 4" Neptune Protectus III E -Coder Retrofit Registers w/3' Nicor Connector, CF 13 $ 258.62 $ 3,362.06 $ 258.62 $ 3,362.06 4 6" Neptune TruFlo Compound E -Coder Retrofit Registers w/3' Nicor Connector, CF 3 $ 129.41 $ 388.23 $ 129.41 $ 388.23 4 6" Neptune HPT E -Coder Retrofit Register w/3' Nicor Connector, CF 2 $ 258.82 $ 517.64 $ 258.82 $ 517.64 4 6" Neptune Protectus III E -Coder Retrofit Registers w/3' Nicor Connector, CF 7 $ 129.41 $ 905.87 $ 129.41 $ 905.87 4 8" Neptune HPT E -Coder Retrofit Register w/3' Nicor Connector, CF 2 $ 258.82 $ 517.64 $ 258.82 $ 517.64 4 8" Neptune Protectus III E -Coder Retrofit Registers w/3' Nicor Connector, CF 16,921 $ 30.88 $ 522,520.48 $ 30.88 $ 522,520.48 4 15X9X1-3/16 "C" GRAY TR NO HOOK *NEWPORT* POLYMER LID 7,259 $ 40.73 $ 295,659.07 $ 40.73 $ 295,659.07 4 18X11 "C" GRAY TOUCH READ *NO HOOK* *NEWPORT* POLYMER LID 1,972 $ 71.78 $ 141,550.16 $ 71.78 $ 141,550.16 4 15X9X1-3/16 "C" GRAY TR NO HOOK *NEWPORT* POLYMER LID 10,000 $ 13.00 $ 130,000.00 $ 13.00 $ 130,000.00 4 Provide pricing for 10,000 James Jones Meter Bushing Part #E -128H 757 $ 60.00 $ 45,420.00 $ 60.00 $ 45,420.00 4 Mi.node 4 Radio with Nicor Connector 26,286 $ 3.95 $ 103,829.70 $ 3.95 $ 103,829.70 TTL Tab C- Installation Installation of Water Meter, Register, and Endpoint 5/8" Meters 16,917 $ 75.00 $ 1,268,775.00 $ 75.00 $ 1,268,775.00 Prevailing Wage Rate Priced at Residental Laborer Rate 3/4" Meters 4 $ 75.00 $ 300.00 $ 75.00 $ 300.00 Prevailing Wage Rate Priced at Residental Laborer Rate H •h 1" Meters 1-1/2" Meters 2" Meters Water Meter Retrofit with Endpoint 3" Neptune Tru/Flo Compound Meters 3" Neptune HPT Compound Meters 4" Neptune Tru/Flo Compound Meters 4" Neptune HPT Compound Meters 4" Neptune Proctectus III Compound Meters 6" Neptune Tru/Flo Compound Meters 6" Neptune HPT Compound Meters 6" Neptune Proctectus III Compound Meters 8" Neptune HPT Compound Meters 8" Neptune Proctectus III Compound Meters Water Meter Lids 3/4" DFW Meter Lid 1" DFW Meter Lid 2" DFW Meter Lid Meter Lid Drilling Professional Services Project Management Total 7,259 $ 75.00 $ 544,425.00 $ 75.00 $ 544,425.00 Prevailing Wage Rate Priced at Residental Laborer Rate 553 $ 365.00 $ 201,845.00 $ 365.00 $ 201,845.00 Prevailing Wage Rate Priced at Residental Laborer Rate 32 $ 158.81 $ 5,081.92 $ 158.81 $ 5,081.92 7,259 11 $ 158.81 $ 1,746.91 $ 158.81 $ 1,746.91 1,972 $ 3.00 52 $ 158.81 $ 8,258.12 $ 158.81 $ 8,258.12 $ 10.00 $ 9 $ 158.81 $ 1,429.29 $ 158.81 $ 1,429.29 1 $ 158.81 $ 158.81 $ 158.81 $ 158.81 13 $ 158.81 $ 2,064.53 $ 158.81 $ 2,064.53 3 $ 158.81 $ 476.43 $ 158.81 $ 476.43 2 $ 158.81 $ 317.62 $ 158.81 $ 317.62 7 $ 158.81 $ 1,111.67 $ 158.81 $ 1,111.67 2 $ 158.81 $ 317.62 $ 158.81 $ 317.62 16,921 $ 3.00 $ 50,763.00 $ 3.00 $ 50,763.00 7,259 $ 3.00 $ 21,777.00 $ 3.00 $ 21,777.00 1,972 $ 3.00 $ 5,916.00 $ 3.00 $ 5,916.00 $ 10.00 $ $ 10.00 $ Removed for 1.5" and 2" upgrade 26,624 1 $ 4.54 $ 120,872.96 1 $ 8.00 $ 212,992.00 $ 8,652,227.61 $ 8,744,346.65 8-61 EXHIBIT B - LETTERS OF SUPPORT 8-62 Street Address: 18700 Ward Street Fountain Valley, California 92708 Marling Address: P.O. Box 20895 Fountain Valley, CA 92728-0895 (714) 963-3058 Fax: (714) 964-9389 www.r,wdoc.com Brett R. Barbre President Joan C. Finnegan Vice President Larry D. Dick Director Wayne S. Osborne Director Megan Yeo Schneider Director Sat Tamaribuchi Director Jeffery M. Thomas Director Robert J. Hunter Genera! Manager MEMBER AGENCIES City of Brea City of Buena Park East Orange County Water District EI Toro Water District Emerald Bay Service District City of Fountain Valley City of Garden Grove Golden State Water Co. City of Huntington Beach Irvine Ranch Water District Laguna Beach County Water District City of La Habra City of La Palma Mesa Water District Moulton Niguel Water District City of Newport Beach City of Orange Orange County Water District City of San Clemente City of San Juan Capistrano Santa Margarita Water District City of Seal Beach Serrano Water District South Coast Water District Trabuco Canyon Water District City of Tustin City of Westminster Yorba Linda Water District April 18, 2018 VIA ELECTRONIC MAIL scatron@newportbeachca.gov Steffen Catron Utilities Acting Director, Municipal Operations Department City of Newport Beach 949 West 16th Street Newport Beach, California 92663 Re: Letter of Support for Funding the City of Newport Beach's Advanced Metering Infrastructure implementation Program Phase 2 Project (Project) grant application for the United States Department of the Interior, Bureau of Reclamation's WaterSMART: Water and Energy Efficiency Grants for Fiscal Year 2018 — FOA No. BOR -DO -18-F006. Dear Mr. Catron: We understand that the City of Newport Beach (City) is submitting a WaterSMART: Water and Energy Efficiency Grant application for consideration by the United States Bureau of Reclamation for Fiscal Year 2018. This grant would help fund the Advanced Metering Infrastructure Implementation Program Phase 2 Project, as part of its long-term goal of water supply reliability and efficient water management. The Phase 2 AMI Project includes the upgrade of 26,559 existing manually -read (via vehicle drive-by) with an AMI fixed base network system that will automatically collect and store hourly consumption data, aiding in water conservation and water use efficiency and improved water management. The Municipal Water District of Orange County has been providing reliable, safe drinking water to its customers since 1951 and its service area includes the City of Newport Beach. The Municipal Water District of Orange County fully supports the project and the City's efforts to enhance water use efficiency and local water supply reliability. If you have any questions or need additional information regarding our support of this project, please do not hesitate to contact me by email at rhuntera,mwdoc.com or via telephone at (714) 593-5026. Sincerely, Robert J. Hunter General Manager MUNICIPAL WATER DISTRICT OF ORANGE COUNTY 8-63 DIRFC70RS PHILIP L. ANTHONY DENIS R. BILODEAU, P.E. • SHAWN DEWANE + ■` CATHY GREEN w DINA NGUYEN U VICENTESARMIENTD STEPHEN R.SHELDON ' JAMES VANDERBILT SINCE 1933 BRUCE WHITAKER ROGER C.YOH,P.E. ORANGE COUNTY WATER DISTRICT ORANGE COUNTY'S GROUNDWATER AUTHORITY April 23, 2018 Steffen Catron Acting Utilities Director City of Newport Beach 949 West 16th Street Newport Beach, California 92663 O=Fic«S President DENIS R. BILODEAU, P.E. First Vice President PHILIP L. ANTHONY Second Vice President SHAWN DEWANE General Manager MICHAEL R. MARKUS, P.E., D.WRE Re: Letter of Support for Funding the City of Newport Beach's Advanced Metering Infrastructure Implementation Program Phase 2 Project (Project) grant application for the United States Department of the Interior, Bureau of Reclamation's WaterSMART: Water and Energy Efficiency Grants for Fiscal Year 2018 — FOA No. BOR -DO -18-F006. Dear Mr.,Eatron: We understand that the City of Newport Beach (City) is submitting a WaterSMART: Water and Energy Efficiency Grant application for consideration by the United States Bureau of Reclamation for Fiscal Year 2018. This grant would help fund the Advanced Metering Infrastructure Implementation Program Phase 2 Project, as part of its long-term goal of water supply reliability and efficient water management. The Phase 2 AMI Project includes the upgrade of 26,559 existing manually -read (via vehicle drive-by) with an AMI fixed base network system that will automatically collect and store hourly consumption data, aiding in water conservation and water use efficiency and improved water management. The Orange County Water District has been providing groundwater supply to 19 municipal water agencies and special districts, including the City of Newport Beach, that serve more than 2.4 million Orange County residents since 1933. The Orange County Water District fully supports the project and the City's efforts to enhance water use efficiency and local water supply reliability. If you have any questions or need additional information regarding our support of this project, please do not hesitate to contact me by email at mmarkusgocwd.com or via telephone at (714) 378-3200. Sincerely, r.- Mic ael R. Markus, P.E. D. WRE, BCEE, F.ASCE General Manager J e EXHIBIT C - RESOLUTION 8-65 CITY OF NEWPORT BEACH RESOLUTION NO. 2018 -XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR THE WATERSMART: WATER AND ENERGY EFFICIENCY GRANT FOR 2018 WHEREAS, the United States Bureau of Reclamation is currently offering grant opportunities through the WaterSMART: Water and Energy Efficiency Grants for Fiscal Year ("FY") 2018 and WHEREAS, said WaterSMART: Water and Energy Efficiency Grants for FY 2018 is a cost -shared program emphasizing water and energy efficiency; and WHEREAS, the City Council of the City of Newport Beach supports the submission by the City of Newport Beach ("City") of a grant application, prepared and approved by the City, to the WaterSMART: Water and Energy Efficiency Grants for FY 2018; and WHEREAS, the City is capable of providing the amount of matching funds of up to $8,188,009 in cash and/or in-kind contributions specified in the grant application's funding plan; and WHEREAS, if selected for a WaterSMART: Water and Energy Efficiency Grants for FY 2018, the City will work with the United States Bureau of Reclamation to meet established deadlines for entering into a cooperative agreement; NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council approves the submission of the application for the WaterSMART: Water and Energy Efficiency Grants for FY 2018 by the City for fiscal year 2018-19. Section 2: In the event grant funding is provided by the United States Bureau of Reclamation, the City Council authorizes the City Manager or his designee to accept the grant and sign any contract for administration of the grant funds and delegate the Director of Finance to act as a fiscal agent for any grant funding received. Section 3: This resolution shall take effect immediately. Section 4: The City Clerk shall certify to the adoption of this resolution and henceforth and thereafter the same shall be in full force and effect. :.. PASSED AND ADOPTED this 22nd day of May, 2018. Marshall "Duffy" Duffield Mayor ATTEST: Leilani I. Brown City Clerk 8-67