HomeMy WebLinkAbout2015-03-16 Ordinance 5313Ordinance No. 5313
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET
FOR FISCAL YEAR 2015 IN THE WATER FUND TO PROVIDE AN APPROPRIATION OF
$400,000 FROM THE WATER FUND OPERATING RESERVE TO AMEND THE
MEMORANDUM OF UNDERSTANDING WITH THE SANTA CLARA VALLEY WATER
DISTRICT {SCVWD) THEREBY INCREASING PALO ALTO'S TOTAL COST OBLIGATION BY
$500,000 THROUGH FISCAL YEAR 2016 FOR A TOTAL COST OBLIGATION OF
$1,235,915 TO PARTICIPATE IN WATER CONSERVATION PROGRAMS. THE
REMAINING $100,000 IN FUNDING NEEDED FOR THE CONTRACT WILL BE FUNDED
FROM AVAILABLE WATER DEMAND SIDE MANAGEMENT (DSM} OPERATING
BALANCE.
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. The Council of the City of Palo Alto finds and determines as follows:
A. Pursuant to the provisions of Section 12 of Article Ill of the Charter of the City of
Palo Alto, the Council on June 16, 2014 did adopt a budget for Fiscal Year 2015; and
B. Since 2002, the City of Palo Alto Utilities Department (CPAU) has partnered with
SCVWD to administer water efficiency programs to meet the City's water reduction goals
(the 2010 Urban Water Management Plan established a goal of reducing per capita water
usage by 20% by 2020.} This partnership between SCVWD and the City is formalized through
a MOU, through which SCVWD and the City co-fund various programs; and
C. The most recent MOU, approved by Council in July 2013, covers the period
between July 1, 2013 and June 30, 2016, and comprises nine water efficiency programs,
with seven administered by SCVWD and two by CPAU. Under this MOU, the City has an
obligation to pay SCVWD a maximum of $735,915 as co-funding for the seven programs
administered by SCVWD and SCVWD has an obligation to pay the City a maximum of
$164,625 as co-funding for the two programs administered by the City. For rebate
programs, the co-funding from CPAU pays for 50% ofthe total customer rebate; and
D. Due to the severe drought situation, in 2014 the State Water Resources Control
Board adopted emergency regulations for urban water conservation, requiring mandatory
water use restrictions in all cities, specifically targeting outdoor water use; and
E. In April of 2014 and in response to SCVWD doubling its Landscape Rebate
Program (LRP) rebate level from $1.00 to $2.00 per square foot for replacement landscaping
and removed the maximum· rebate amount of $1,000 for residential and $10,000 for
commercial properties in order to attract participation in this historically underutilized
program, CPAU followed SCVWD's recommendation and increased its customer rebate
contribution from $1.00 to $2.00 per square foot until December 31, 2014, and agreed to
5484/so 1 Revised February 23, 2015
II
II
II
II
II
II
II
II
II
II
II
II
II
II
II
II
II
waive the maximum rebate thus providing LRP applicants with up to $4.00 per square foot
for their entire conversion; and
F. The doubling of rebates and lifting of limits by SCVWD and CPAU immediately
resulted in increased volume and size of 2ustomer LRP applications throughout the City,
including commercial customers with significant turf acreage and large campus
environments; and
G. To ensure continued and aggressive water conservation efforts, and because of
the unanticipated level of response to the landscape rebate program, staff recommends
Council approve an .amendment to the existing 2014-2016 MOU with SCVWD to increase
Palo Alto's total cost obligation by Five Hundred Thousand Dollars ($500,000) needed to
fund the MOU for the remainder of Fiscal Year 2015.
SECTION 2. The sum of Four Hundred Thousand Dollars ($400,000} is hereby
appropriated to the Water Operating budget to fund a portion of the MOU. This increase is
offset by a reduction to the Water Stabilization Reserve. The remaining One Hundred
Thousand Dollars ($100,000) required for the contract will be funded from available Water
DSM operating balance.
SECTION 3. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this
ordinance shall b~come effective upon adoption.
SECTION 4. The Council of the City of Palo Alto hereby finds that this is not a project
under the California Environmental Quality Act and, therefore, no environmental impact
assessment is necessary.
5484/so 2 Revised February 23, 2015
INTRODUCED AND PASSED: March 16, 2015
AYES: BERMAN, BURT, DUBOIS, FILSETH, KNISS, SCHMID, WOLBACH
NOES:
ABSENT: HOLMAN, SCHARFF
ABSTENTIONS:
NOT PARTICIPATING:
ATIEST: ~~ A~i City Clerk Mayor
APPROVED AS TO FORM:
nior~tty Attorney
5484/so 3 Revised February 23, 2015