That the City Council and Utility Authority:
A.  Waive formal bid requirements per La Habra Municipal Code, Section 4.20.080 (B) when a service firm has established such a successful past history of work with the City that it is clearly in the public interest not to negotiate with any other source;

B.  Authorize the appropriation of $43,000 from the Utility Authority Water Fund balance to fund the cost of this agreement; and

C.  Authorize the City Manager/Executive Director to execute a professional services agreement with Stetson Engineers, Inc. and issue a purchase order in the amount of $43,000 to prepare the Groundwater Sustainability Act five-year mandatory update.

The Sustainable Groundwater Management Act (SGMA) became effective January 1, 2015.  Under the law, a city’s Groundwater Sustainability Plan (GSP) must comply with the SGMA, including the mandate that requires collaboration with relevant State agencies and local adjacent water agencies. On December 21, 2015, the City Council approved and adopted resolutions declaring the City of La Habra as the Groundwater Sustainability Agency (GSA) for the La Habra groundwater basin.

The Orange County Water District (OCWD), the Irvine Ranch Water District and the City (collectively, the Agencies), are all within Basin 8-1. The Agencies have agreed to collaborate and submit an Alternative Plan to a GSP.  In accordance with Water Code §10733.6(b)(3), this Alternative Plan presents an analysis of hydrological and environmental conditions and demonstrates that the Basin has operated within its sustainable yield over a period of at least 10 years.  In addition, the Alternative Plan establishes objectives and criteria for resource management that would be addressed in a GSP and is designed to be “functionally equivalent” to a GSP.
 
As shown in the Alternative Plan, Basin 8-1 has operated within its sustainable yield for more than 15 years without experiencing significant and unreasonable reductions in groundwater levels, reduction in storage, water quality degradation, seawater intrusion, inelastic land subsidence, or depletions of interconnected surface water that have significant and unreasonable adverse impacts on beneficial uses of the surface water.

Basin 8-1 Alternative Plan was submitted to the California Department of Water Resources (DWR) on December 22, 2016, and approved on July 17, 2019.  Per SGMA requirements, the Basin 8-1 Alternative Plan must be updated and resubmitted to DWR by January 1, 2022.  Therefore, that portion of the Alternative Plan related to the La Habra-Brea management area must be updated to address comments provided by DWR.  Staff proposes to hire Stetson Engineers, Inc. (Stetson) to complete that update.

If approved, the scope of work for Stetson will include: the development of a Basin Water Budget; evaluation of undesirable results; establishment of sustainable management criteria and management actions; development of a monitoring network, preparation of the Alternative Plan Update, and coordination of work efforts with staff from OCWD and the City of Brea.
 
In recognition of Stetson’s successful past work history with the City and considering their experience helping to protect and preserve La Habra’s water resources and interests associated the La Habra Groundwater Basin, staff believes it is in the public’s interest to continue the Authority's working relationship with Stetson in order to comply with DWR’s requirements.

Approval of the agreement with Stetson has no financial impact to the General Fund; however, it will require the appropriation of $43,000 from the Utility Authority Water Fund balance for the preparation of the Groundwater Sustainability Act five-year mandatory update.