That the Utility Authority:
A.  Authorize the Executive Director to enter into an agreement with the Municipal Water District of Orange County (MWDOC) to share the consultant's cost, in the amount of $69,616.76, for the Utility Authority's expenses related to the development of a Conservation Framework in compliance with Assembly Bill (AB) 1668 and Senate Bill (SB) 606 (Making Conservation a California Way of Life Framework); and,

B.  Authorize staff to issue a purchase order to MWDOC in the amount of $69,616.76 for the development of a Conservation Framework.

In June 2015, the City of La Habra entered into a Water Conservation Participation Agreement (Agreement) with the Municipal Water District of Orange County (MWDOC).  The term of the agreement was from July 1, 2015, through June 30, 2025.  The purpose of the agreement was to create a master water conservation participation agreement between MWDOC and participating agencies, combining all the conservation programs and incentives (Programs) into one agreement.  Addendums to the agreement were issued for changes involving Metropolitan approved items, MWDOC Board approved items, grant funding, adding and subtracting MWDOC administered programs and participant administered programs, and changes to incentive programs, including funding and incentive levels. Each agency elects administered programs and enters into a participation addendum. 

A Second Amendment to the Agreement went into effect on July 1, 2025, and will extend to June 30, 2035.

Addendum 3E to the Agreement addresses Assembly Bill (AB) 1668 and Senate Bill (SB) 606, also known as the Making Conservation a California Way of Life Framework, or Conservation Framework, requires each urban water supplier to calculate and report their Urban Water Use Objective and to stay within their calculated annual water budget.  Additionally, the Conservation Framework includes commercial, industrial, and institutional (CII) non-volumetric Performance Measures including CII customer account classifications, thresholds for converting mixed CII meters to dedicated irrigation meters (DIMs) or in lieu technologies, CII best management practices (BMPs) and identification and information sharing with disclosable buildings.

To assist Orange County Water Suppliers, MWDOC has entered into an agreement with Environmental Incentives (EI) and arranged for Metropolitan funding and United States Bureau of Reclamation (USBR) funding, to provide technical assistance for compliance with the Conservation Framework.  This Conservation Framework Technical Assistance Program (TAP) includes required tasks as well as optional tasks with associated costs.  Authority staff worked with MWDOC staff to identify five (5) tasks within the program offerings that will ensure the City's compliance with Making Conservation a California Way of Life Framework requirements.  Tasks include:  Program Management, Framework Compliance Plan, Annual Report Compilation and Data Management (2027 Report), CII BMPs Implementation Plan, and Internal/External Engagement.  The valuation of these five tasks is $90,363.55.  The MWDOC cost share is $15,000 and the Authority has credit for previously provided upfront funding of $5,746.79, resulting in a net n expense of $69,616.76.

Approval of this agreement will have no impact on the City's General Fund.  The adopted FY 2025-2026 Water Operations Budget has sufficient funding to support the $69,616.76 cost share to develop a conservation framework.