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HomeMy WebLinkAbout6f. Authorize the renewal of 10-year Cross-Connection Inspection Serviced Contract Between the City and County of San Luis Obispo Item 6f Department: Utilities Cost Center: 601-6004 For Agenda of: 8/19/2025 Placement: Consent Estimated Time: NA FROM: Aaron Floyd, Utilities Director Prepared By: Kellie Fortner, Recycled Water Specialist / Nick Teague, Water Resources Program Manager SUBJECT: AUTHORIZE THE RENEWAL OF 10-YEAR CROSS-CONNECTION INSPECTION SERVICES CONTRACT BETWEEN THE CITY AND COUNTY OF SAN LUIS OBISPO RECOMMENDATION Authorize the renewal of the 10-year Cross-Connection Services agreement between the County of San Luis Obispo and the City of San Luis Obispo. POLICY CONTEXT In 1973, the U.S. Environmental Protection Agency published the first comprehensive Cross-Connection Control Manual to provide public water systems with guidance for safeguarding drinking water from contamination caused by cross-connections and backflow events. In 1984, California adopted regulatory standards for backflow prevention and cross - connection control through Title 17 of the California Code of Regulations. These regulations require public water systems to protect potable water supplies from contamination, identify and mitigate cross-connection hazards, and implement and maintain a cross-connection control program. In 2024, the California State Water Resources Control Board adopted the Cross- Connection Control Policy Handbook that expands Cross-Connection Control program requirements to standardized compliance timelines, technical specifications, and the formal development of a Cross-Connection Control Plan for each public water system. The State Water Board adopted a revised version of the Handbook on June 17, 2025, which extended some deadlines and changed some language to align with other pre - existing regulations. Page 103 of 350 Item 6f DISCUSSION Background A cross-connection is any point in a plumbing or water system where the potable water supply could potentially mix with contaminated water or other substances. Common examples of potential cross-connections include garden hoses submerged in pools or buckets, irrigation systems without proper safeguards, or commercial equipment connected to both potable and non-potable water lines. If not properly managed, cross - connections can lead to the introduction of harmful substances like fertilizers, bacteria, or industrial chemicals into the public water supply. Backflows, a specific type of cross-connection, are incidents when water flows in the wrong direction, which can draw pollutants or contaminants back into the public water supply. These can occur if pressure changes in the public water system due to events such as a water main break or firefighting activity. To reduce the likelihood of cross-connection and backflow incidents, backflow prevention assemblies are required on service connections with the highest degree of risk, including all non-residential service connections within the City. In accordance with the Cross- Connection Control Policy Handbook1, backflow assemblies are required to be tested upon installation and annually thereafter to ensure proper functionality. The City of San Luis Obispo’s potable water system is a public water system regulated under the California Safe Drinking Water Act and must comply with the Cross-Connection Control Policy Handbook, previously governed by the California Code of Regulations, Title 17, Chapter 5 – Cross-Connection Control and Backflow Prevention. These regulations mandate that all public water systems establish and maintain an effective Cross-Connection Control (CCC) Program to protect the potable water supply from contamination caused by cross-connections and backflow incidents. To meet these requirements, the City has a service agreement with the County of San Luis Obispo that delegates the authority and responsibility for implementing and managing the CCC Program on behalf of the City. The County’s responsibilities include conducting on-site inspections to identify actual or potential cross-connections, performing hazard assessments, managing the initial and annual testing of backflow prevention assemblies, maintaining program records, and taking enforcement actions when necessary. 1 Cross-Connection Control Policy Handbook: https://www.waterboards.ca.gov/drinking_water/certlic/drinkingwater/docs/2025/cross- connection-control-policy-handbook.pdf Page 104 of 350 Item 6f The County provides cross-connection services for multiple local water suppliers and offers a cost-effective regional approach to cross-connection control to meet these regulatory requirements. The City currently has nearly 2,000 backflow assembly devices that require annual testing and certification. The County maintains certified staff to conduct inspections, manage backflow assembly testing compliance, and maintain comprehensive testing records to ensure the protection of public health within the City of San Luis Obispo. The 2025-2035 contract reflects the regulatory changes from Title 17 to the Cross - Connection Control Policy Handbook and the associated funding requirements. Previous Council or Advisory Body Action In 2011, Council adopted the first formal contract between the County of San Luis Obispo and the City for cross-connection inspection services; however, the City has utilized the County for Cross-Connection Control services since 1978. In 2016, the contract was renewed for an additional 10 years, with an expiration date of June 30, 2025. Public Engagement The Utilities Department has complied with requirements to complete a Cross Control Connection Plan and submit the Plan to the State Division of Drinking Water by July 1, 2025. This Plan outlines how the City will communicate with and provide educational material to the public regarding the dangers of cross-connections. This Plan will be publicly available through the City’s website once reviewed and approved by the State Division of Drinking Water. CONCURRENCE The County Environmental Health Division and the County of San Luis Obispo Board of Supervisors concur with the contract, adopting Resolution No. 2025-145 on July 8, 2025. The City Attorney’s office has reviewed the contract and approves as to form. ENVIRONMENTAL REVIEW The Contract for Cross-Connection Inspection Services is not a "project" under the California Environmental Quality Act (CEQA), because the action is limited to an administrative contract renewal and does not commit the City to any actions that would have the potential to result in a direct or indirect physical change on the environment, as defined by State CEQA Guidelines Section 15378. Furthermore, any enforcement actions implemented by the County would be categorically exempt and would have a beneficial effect on the environment by bringing existing infrastructure into compliance with water and public health regulations, consistent with State CEQA Guidelines Section 15308 (Actions by Regulatory Agencies for Protection of the Environment). Page 105 of 350 Item 6f FISCAL IMPACT Budgeted: Yes Budget Year: 2025-27 Funding Identified: Yes Fiscal Analysis: The City’s Water Fund has allocated $50,000 in each year of the 2025-27 Financial Plan to cover contracted service delivery associated with the state-mandated cross-connection control program. This funding supports the required inspection, backflow prevention oversight, and enforcement activities proposed to be provided by the County. Renewal of the agreement will allow the Utilities Department to continue utilizing these services with no change to the Council-approved 2025-27 Financial Plan. Contract costs are based on a published hourly-rate of $149 in FY 2025-26 for County staff per the County of San Luis Obispo Environmental Health Services Division Fee Schedule published on July 1, 2025. Overall costs generally do not exceed $50,000/year for these contracted services. Because the services identified in this contract are required to protect public health, City staff do not recommend placing a cap on the amount of funding identified within t he contract. City staff would be required to request additional funding from the City Council or find existing funds within the budget if annual costs exceed $50,000. Funding Sources Total Budget Available (FY 26 and 27) Current Funding Request (FY 26) Water Fund $100,000* NA Total $100,000 NA *$50,000/year for both FY 2025-26 and FY 2026-27. ALTERNATIVES 1. Council could decide not to authorize the renewal of the contract for the City’s Cross-Connection Control Program. Not authorizing the execution of this contract would require that the City conduct all backflow and cross-connection control-related services. The City does not currently have sufficient staffing resources trained and dedicated to this work. This would require that the Utilities Department hire an additional staff member to support this work, provide equipment, and an additional vehicle, which would exceed the costs that are expected to be incurred by the City through this contract. This would also leave a gap in regulatory compliance while the recruitment was conducted and as new staff came up to speed on program requirements. 2. Council could direct staff to proceed with the contract for a shorter period until City staff were able to be recruited and trained to perform the work listed above in-house. This would require that the Utilities Department hire an additional staff member to support this work, provide equipment, and an additional vehicle, which would exceed the costs that are expected to be incurre d by the City through this contract. ATTACHMENTS A - County of San Luis Obispo Cross-Connection Control Contract Page 106 of 350 Page 1 of 12 AGREEMENT FOR CROSS-CONNECTION INSPECTION SERVICES This Agreement for Cross-Connection Inspection Services ("Agreement") is made and entered into by and between the County of San Luis Obispo, a public entity in the State of California, ("County") and City of San Luis Obispo, a California incorporated city("Contractor"), (collectively, "Parties"). WITNESSETH: WHEREAS, Contractor, within its jurisdictional boundaries or area of responsibility, is in need of special services; to wit, cross-connection inspection services; and WHEREAS, County has qualified staff who are trained, experienced, expert and competent to provide cross-connection inspection services for the appropriate fees and pursuant to the terms and conditions hereinafter set forth. NOW THEREFORE, in consideration of the covenants, conditions, agreements and stipulations set forth herein, the Parties hereby mutually agree as follows: 1. Services. The Parties agree to perform the services described in Exhibit A, attached hereto and incorporated herein by this reference. 2. Compensation. The Parties agree to the compensation described in Exhibit B, attached hereto and incorporated herein by this reference. 3. Duration. The Parties agree to the duration described in Exhibit C, attached hereto and incorporated herein by this reference. 4. General Conditions. The Parties agree to the general conditions described in Exhibit D, attached hereto and incorporated herein by this reference. 5. Special Conditions. The Parties agree to the special conditions described in Exhibit E (if any), attached hereto and incorporated herein by this reference. To the extent that there are conflicts between the general conditions in Exhibit D and the special conditions in Exhibit E, the terms and conditions of the special conditions in Exhibit E shall be controlling. 6. Notices. Notices required under this Agreement shall be provided to: Page 107 of 350 Page 2 of 12 COUNTY OF SAN LUIS OBISPO Matthew A. Giuffrida Cross-Connection Control Specialist 2156 Sierra Way, San Luis Obispo, CA 93406 City of San Luis Obispo Aaron Floyd, Utilities Director 879 Morro St. San Luis Obispo, CA 93406 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date set for the below. CONTRACTOR By:____________________________________ ___________________________ Whitney McDonald, City Manager Date COUNTY OF SAN LUIS OBISPO: By:____________________________________ ___________________________ Nicholas Drews, Health Agency Director Date APPROVED AS TO FORM AND LEGAL EFFECT: Jon Ansolabehere County Counsel By:____________________________________ __________________________ Deputy County Counsel Date Page 108 of 350 Page 3 of 12 AGREEMENT FOR CROSS-CONNECTION INSPECTION SERVICES EXHIBIT A SCOPE OF SERVICES 1. Contractor Obligations. The Contractor shall perform the following duties: A. Contractor will prepare, adopt, and furnish all appropriate ordinances, resolutions or policies. 2. County Obligations. The County, acting through the Public Health Department, Environmental Health Division, shall perform the following duties within the Contractor's areas of responsibility: A. County will conduct a survey by performing a thorough inspection of all water uses for cross-connections. County will prioritize surveys of special hazard facilities. If corrections are necessary or if other need arises, County will conduct additional surveys as needed to confirm compliance, follow-up on corrections or identify newly created cross-connections. B. County will prepare and maintain written survey reports, water user notices, correction notices and follow-up reports. 1) Water User Notices. a. County will provide a written survey report to a water user listing cross- connections found on the user's premises. County will notify the water user of corrective action required, if any, and the required compliance date. b. County will follow up with the water user to confirm that corrective action was performed in a timely manner and compliance has been achieved or if non-compliance continues. County will inform the water user of further corrective action and required compliance dates as needed. County will re-inspect as needed until compliance is accomplished. 2) Contractor Notices. County will provide a copy of the survey report and letter to the water user to the Contractor. County will provide a copy of the follow-up letters(s) to the user confirming compliance or notifying the water user of further corrective action and compliance dates. Page 109 of 350 Page 4 of 12 C. County will perform the following enforcement measures. 1) To the extent the County would normally prosecute San Luis Obispo County Code violations, County may prosecute violations of any applicable County ordinances related to cross-connections. 2) County will also cite any State laws, non-County ordinances, Contractor resolutions or policies in a correction letter to a water user. 3) Contractor may pursue enforcement as appropriate. In the event of litigation in any tribunal with the power to issue subpoenas, and provided a subpoena is issued for a County employee with the appropriate fees tendered as per Government Code, section 68096.1, County employees, if still in County service, shall appear and testify as a witness regarding cross- connections. County employees may be interviewed or deposed to prepare for litigation. D. Backflow Prevention Devices. 1) County will determine the necessity of backflow prevention devices at the water service connection for the protection of the water main where internal protection does not solve the total cross-connection problem. 2) County will maintain a list of known backflow devices and the known location of the devices in service in the Contractor's service area. Such list shall be retained by County in accordance with Exhibit E. 3) County will provide a diagram for the proper installation of approved backflow prevention devices. If a manufacturer's installation instructions, diagrams or both are available, providing the manufacturer's material shall satisfy this obligation. E. County will perform plan checks of water usage when requested by the water purveyor/district when necessary to supplement Building Department plan reviews. F. Testing. Testing of backflow devices is required as per the Cross-Connection Control Policy Handbook issued by the State Water Resources Control Board , as hereafter amended. At present, testing is required annually. 1) County will notify the water user when testing is due and how to report results. 2) County will supply a list of qualified backflow prevention device testers. 3) County will follow up on delinquent reporting of test results. Page 110 of 350 Page 5 of 12 4) County will update records when testing reports are received. 5) County will evaluate testing results for inadequacies. G. Technical Consultations. County will provide technical consultation in conjunction with Contractor. At present, the County normally coordinates cross- connection control program elements with other water purveyors, districts, and users. To the extent this service continues in the future, County will continue to coordinate cross-connections with other jurisdictions or responsible purveyors or water users and will share information that is not restricted due to confidentiality. Contractor will also provide reciprocal technical consultants and non- confidential information to County. Page 111 of 350 Page 6 of 12 AGREEMENT FOR CROSS-CONNECTION INSPECTION SERVICES EXHIBIT B COMPENSATION 1. Time and Costs. This is a time and costs Agreement. The cross-connection inspection services shall be charged hourly. Additional costs shall include, but not be limited to, reasonable "out-of-pocket" expenses necessarily incurred by County in performing its obligations under this Agreement. A. Hourly Rate-. The hourly rate shall include compensation for the County's inspector staff, departmental overhead, and clerical support and office supplies. The hourly rate for FY 2025-26 is $149 per hour. The San Luis Obispo County fee schedule is located at the following link: https://www.slocounty.ca.gov/departments/health-agency/public- health/environmental-health-services/forms-documents/fees 1) The San Luis Obispo County Board of Supervisors establishes, amends and modifies the hourly rates at least annually and at other times as necessary. The rate establishment and amendments are "events of independent significance" and are subject to public review and are part of the public record. These rates are specific, identifiable and enforceable. 2) There is a public notice of the Board's proposed action and action to amend the rates through the process of the Board's regularly scheduled meetings. Therefore, the rates will change by the public, unilateral action of the Board of Supervisors without further agreement or action by Contractor. 3) The duly adopted current rates and subsequent amendments to the rates shall be binding in this Agreement without additional written amendments to this Agreement. Upon the effective date of the rate change, all services provided on or after that date shall be charged at the new rates. Page 112 of 350 Page 7 of 12 B. Administrative Costs. Administrative costs shall be itemized. Administrative costs are charges to water purveyors based on the quantity of their service connections, which compensates the County of San Luis Obispo for time that benefits the Cross Connection Program but cannot be attributed to an individual water purveyor. Activities in this category include, but are not limited to, review and approval of certified testers, disciplinary actions against testers (as required), communication with State offices regarding relevant regulations, review and quality control of data in the online portal, communication with testers regarding regulations and policies, and coordination with other EHS teams to improve the Cross- Connection Control Program, such as GIS and website administrators. 2. Billing. County shall submit an itemized statement to Contractor on or before the 15th day of every other month for all services rendered during the previous two calendar months. Contractor shall remit to the County of San Luis Obispo all uncontested amounts listed on the itemized statement not later than thirty (30) days after it is received by the Contractor. Page 113 of 350 Page 8 of 12 AGREEMENT FOR CROSS-CONNECTION INSPECTION SERVICES EXHIBIT C DURATION 1. Effective Date. The effective date of this Agreement shall be July 1, 2025. 2. Service Date. Services shall commence on or after the Effective Date and shall end upon the Duration Date. 3. Duration Date. This Agreement shall terminate on June 30, 2035. This Agreement may be terminated prior to the Duration Date in accordance with the termination provisions in Exhibit D of this Agreement. 4. Termination. The San Luis Obispo County Board of Supervisors specifically delegates to the Director of the San Luis Obispo County Health Agency the authority to terminate this Agreement in accordance with the provisions in Exhibit D without further need for action, approval or ratification by the Board of Supervisors. The City of San Luis Obispo specifically delegates to the City Manager the authority to terminate this Agreement in accordance with the provisions in Exhibit D without further need for action, approval or ratification by the City Council. Page 114 of 350 Page 9 of 12 AGREEMENT FOR CROSS-CONNECTION INSPECTION SERVICES EXHIBIT D GENERAL CONDITIONS 1. Termination for Convenience. Either Party may terminate this Agreement at any time by giving the other Party thirty (30) days written notice of termination. Termination for convenience shall have no effect upon the rights and obligations of the Parties arising out of any services provided prior to the effective date of such termination. County shall be paid for all work satisfactorily completed prior to the effective date of termination. 2. Termination for Cause. If any of the following occur, either Party shall have the right to terminate this Agreement effective immediately upon giving written notice to the other Party. Rights or obligations of either Party for services satisfactorily performed prior to the termination shall not be affected. A. Either Party fails to perform its duties in a timely and professional manner. B. Funds intended for use for compensation in this Agreement become unavailable for use for the purposes of this Agreement. 3. Status of the Parties' Officers/ Employees/ Agents. Neither Party's officers, employees, agents, partners, other contractors or subcontractors shall be deemed to be employees of the other Party at any time. Nothing in this Agreement shall be construed as creating a civil service employer-employee relationship or a joint venture relationship. No officer, employee, agent, partner, other contractor or subcontractor of the other Party shall be eligible for membership in or any benefits from any County group plan for hospital, surgical, or medical insurance, or for membership in any County group plan for hospital, surgical, or medical insurance, or for membership in any County retirement program, paid vacation, paid sick leave, other leave, with or without pay, collective bargaining rights, grievance procedures, appeals to the Civil Service Commission or any other benefits which inures to or accrues to a County civil service employee. County employees shall not have those rights in Contractor's benefits and programs. The only performance and rights due to the other Party are those specifically stated in this Agreement. 4. Warranty of Professional Service. Each Party warrants that professional staff is necessary to perform this Agreement and that staff members will at all times be properly trained, certified and licensed under the laws and regulations of the State of California to provide the special services herein described. If for any reason staff members are required to provide professional services and all reasonably available staff are not qualified, this Agreement is automatically canceled effective the same date. Page 115 of 350 Page 10 of 12 5. Mutual Indemnification. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), County shall indemnify, defend, and hold harmless the Contractor, and its elected officials, officers, employees, volunteers, and agents (“Contractor Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the County’s performance or County’s failure to perform its obligations under this Agreement or out of the operations conducted by County. In the event the Contractor Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from County’s performance of this Agreement, the County shall provide a defense to the Contractor Indemnitees or at the Contractor’s option, reimburse the Contractor Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Contractor shall indemnify, defend, and hold harmless the County, and its elected officials, officers, employees, volunteers, and agents (“County Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Contractor’s performance or Contractor’s failure to perform its obligations under this Agreement or out of the operations conducted by Contractor. In the event the County Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Contractor’s performance of this Agreement, the Contractor shall provide a defense to the County Indemnitees or at the County’s option, reimburse the County Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. 6. Authority. Any individual executing this Agreement on behalf of Contractor represents and warrants that he or she is duly authorized to execute and deliver this Agreement on behalf of the Contractor, and that this Agreement is binding upon Contractor in accordance with its terms. 7. No Assignment of Agreement. Neither Party may delegate its rights or obligations under this Agreement and shall not assign or otherwise transfer its rights or obligations or any interest herein without the express prior written consent of the other Party. Any attempted assignment, transfer, delegation, hypothecation or subletting without the other Party's prior written consent shall be null and void. 8. Applicable Law and Venue. This Agreement has been executed and delivered in the State of California and covers services to be performed in California. The Parties agree that issues of validity, interpretation and enforcement shall be governed and determined by the laws of the State of California. All of the Parties' rights and obligations created hereunder shall be performed in the County of San Luis Obispo, State of California and such County shall be the venue for any action or proceeding arising out of this Agreement. Page 116 of 350 Page 11 of 12 9. Severability. The invalidity of any provision of this Agreement shall not affect the validity or enforcement of any other provision of this Agreement. 10. Entire Agreement and Modifications. This Agreement supersedes all previous Agreements on the same subject and constitutes the entire understanding of the Parties hereto. No changes, amendments or alterations shall be effective or binding unless in writing and signed in advance of the effective date by both Parties. Page 117 of 350 Page 12 of 12 AGREEMENT FOR CROSS-CONNECTION INSPECTION SERVICES EXHIBIT E SPECIAL CONDITIONS The records required by this Agreement shall be retained for a minimum period of: A. Three (3) years in accordance with Cross-Connection Control Policy Handbook issued by the State Water Resources Control Board, and as hereafter amended. B. All surveys noticed and all correspondence with a water user, County or Contractor shall be maintained for a minimum of five (5) years after compliance has been certified by the County or the longest statutory period cited above, whichever is longer. After five (5) years, the records may continue to be maintained in hardcopy, microfiche or electronic form, if needed, at the sole option of the County. Page 118 of 350