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HomeMy WebLinkAboutStaff Report 344-07City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL 18 FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE:SEPTEMBER 10, 2007 CMR:344:07 SUBJECT:APPROVAL OF MEMORANDUM OF UNDERSTANDING WITH SANTA CLARA VALLEY WATER DISTRICT (SCVWD) TO IMPLEMENT A THREE-YEAR WATER CONSERVATION PROGRAM PARTNERSHIP IN THE AN[OUNT OF $442,715 RECOMMENDATION Staffreconmaends that Council: Approve the Memorandmn of Understanding (MOU) between the City of Palo Alto and Santa Clara Valley Water District (SCVWD) to continue to promote and implement water conservation pro~’ams for Palo Alto residents and conm~ercial utility customers for FY 2007-2008 at a cost of $160,905. The total cost of the program is capped at $442,715 with CPAU directly contributing $160,905 each fiscal year for two fiscal years and $120,905 for the final year. 2.Authorize the City Manager or his desigr~ee to exercise the option to renew the progana partnership for FY 2008-2009 and FY 2009-2010, provided funds are available and included in each year’s Water Fund operating budget. BACKGROUND ha December 1991, Council approved a MOU with the California Urban Water Conservation Council (CUWCC), CMR:550:91, that promoted the 14 Best Management Practices (BMP) for water conservation strateNes. Legislative efforts are underway to make BMP implementation mandatory in the future. In September 2002, Council approved CMR:359:02, which included the first MOU with Santa Clara Valley Water District (SCVWD) to cost-share the development and implementation of water conservation pro~ams. As part of the overall water conservation efforts to comply with the CUWCC’s BMPs, the City of Palo Alto Utilities (CPAU) and SCVWD have partnered over the last five years to promote and cost-share water conservation progams for Palo Alto customers. To date, the City is implementing 13 of the 14 BMPs (Attactnnent B), including: CMR:344:07 Page 1 of 4 ¯Residential Home Water Surveys ¯Residential Plumbing Retrofits ¯System Water Audits ¯Metering with Commodity Rates ¯Large Landscape Conservation ¯High Efficiency Clothes Washers ¯Public Information Program ¯School Education Program ¯Commercial, Industrial, Institutional Programs ¯Conservation Rates ¯Conservation Coordinator ¯Water Waste Prohibition Ordinance ¯Ultra Low Flush or Hitch Efficiency Toilets DISCUSSION There are a total of ten cost-sharing programs requested in this new MOU, nine water conservation programs and one marketing-and-outreach program (Attachment C) that SCVWD will be administering and implementing for CPAU. Marketing for all water conservation programs will be shared bem, een SCVWD and CPAU. Implementation and administrative functions for these programs (e.g. provide scheduling, budget tracking and invoicing, contractor oversight, customer service, and project reporting associated with program implementation) will be handled by the SCVWD staff in San Jose. These water conservation programs and water savings are consistent with the Water Conservation Savings Potential Information Report (CMR:395:04) presented to Council on September 13, 2004. The following table provides a summary of the ten water conservation programs to be implemented in partnership with SCVWD: Program 1 Water-Wise House Carl Program Program 2 ET Controfler Rebate Program Program 3 Residential High Efficiency Toilet Rebate Program Program 4 Irrigation Technical Assistance Program (ITAP) Program 5 Commercial High-Efficiency Toilet Installation Program Residential Residential & Commercial Residential Commercial Commercial & Multi-Family Program provides free site surveys to single-family homes and multi-family dwellings. Includes an interior evaluation (showerheads, aerators and flappers will be replaced if needed) and an irrigation evaluation including a watering schedule. Program provides a rebate for ET controllers for residential and commercial landscapes with functioning irrigation systems. Program provides a $125 rebate for the replacement of old 3.5 gallons per flush or higher toilets with High Efficiency Toilets (1.28 gallons per flush or less and dual-flush toilets). Program provides free irrigation evaluations to assist property owners in better managing their water use and improve irrigation efficiency. Sites must have at least one acre of irrigated landscape to participate. Program provides free High Efficiency Toilets (HET) with free installation to all commercial facilities and multi-family apartment units. Funding SCVVVD & CPAU Grant1 SCVWD CPAU SCVWD & CPAU SCVWD & CPAU Gran~ SCVWD CPAU Program 6 Commercial &Program provides a $400 rebate per coin-op high efficiency Commercial Clothes Washer Multi-Family clothes washer installed in laundromats and common-area SCVWD Rebate Program laundry rooms in apartment complexes.CPAU CMR:344:07 Page 2 of 4 Program 7 Residential Clothes Washer Rebate Program Program 8 Marketing & Outreach Program 9 Large Commercial Indoor Water Survey Program Program 103 Landscape Rebate Program Residential Residential & Commercial Commercial Residential & Commercial Program provides tiered rebates to residents for purchasing a high-efficiency clothes washer. Use of direct mail marketing, newspaper advertisements and other media to market conservation programs. Program provides free indoor water surveys to large commercial, industrial or institutional customers to evaluate potential water savings and efficiency measures. Program provides matching rebate for replacing turf with drought tolerant plants and/or permeable hardscape. ~ Department of gZater Resources grantfitnding through October 2008. "- DeparTment of I~’ater Resources grant funding to start early 2008.3 Program budgeted for only FY 07/08 and FY 08/09. Grant~ SCVWD CPAU SCVWD & CPAU SCVWD & CPAU SCVWD & CPAU Advantages to partnering with SCVWD include: ¯ Significantly lower costs of implementing the water conservation programs because SCVWD infrastructure is already in place, with adequate staffing and technical expertise. Past experience with SCVWD has been positive and is a sigaaificant reason for seeking to expand the collaboration to include additional conservation services. ¯Leveraging of technical expertise between the organizations. ¯Minimizing program start-up costs. ¯Access to grant funding from Department of Water Resources and the United States Bureau of Reclamation. ¯Reducing demands on City staffing resources associated with in-house implementation. RESOURCE IMPACT The total cost of the program, if the MOU is approved for the next three fiscal years, is capped at $442,715. CPAU is directly contributing $160,905 each fiscal year for two years and $120,905 for the final year (Attachment C). The third year of funding (FY 2009-2010) does not include Program 10 - Landscape Rebate Program. SCVWD estimates this program to last ~,o years before re-evaluating for savings and cost-effectiveness. The balance of the total program costs, as well as most of the administrative costs associated with implementation of the water conservation programs will be absorbed by SCVWD. Funds for the program in the amount of $160,905 are included in the FY 2007-2008 Water Fund operating budget. Over the past five fiscal years, SCVWD and CPAU have worked successfully to implement water conservation programs to residents and businesses. By maintaining a successful partnership with SCVWD, the City is able to leverage grant monies from the Department of Water Resources. This will sig~ficantly reduce costs for the Commercial & Multi-Family High Efficiency Toilet Installation Program, the Residential Clothes Washer Rebate Program and the ET Controller Rebate Program. With the available grant funding, the City will potentially save approximately $52,000 a year in program expenditures. Implementation of the proposed conservation programs will sli~tly reduce the City’s water consumption and thus slightly reduce water revenues to the utility. However, implementing these water conservation programs will decrease Palo Alto’s susceptibility to future water shortages by reducing water consumption and leaving more water available during potential water shortages. It is also keeping with the City’s goals of encouraNng sustainability. The San Francisco Public Utilities Commission (SFPUC) and the wholesale customers of the reNonal CMR:344:07 Page 3 of 4 water system (including Palo Alto) siN~ed the Interim Water Shortage Allocation Plan (rWSAP) in 2001. The IWSAP establishes a fixed percentage of water to be provided to all wholesale customers during a future drought. Conserving water in Palo Alto may reduce the severity of future cutbacks that Palo Alto customers will face in a time of drought. POLICY IMPLICATIONS This reconm~endation is consistent with the Council approved Utilities Strate~c Plan, specifically: Supporting Objective No.l: Enhance customer satisfaction by delivering valued products and services and Key Strategy No.7: Implement programs that improve the quality of the envirolm~ent. The recommendation is in line with the City Comprehensive Plan N-24: Maintain City-wide water conservation and efficiency programs for all customer classes. The MOU also complies with the Ahwalmee Water Principles that were adopted by the City in September 2005. Continuing water conservation efforts with the SCVWD specifically support Ahwahnee Principle 4 (Water-Wise Landscaping) and Principle 8 (Water Conservation). ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act (CEQA). ATTACItMENTS A:Memorandum of Understanding B:List of Best Management Practices C:Water Conservation Programs D:Cost-Sharing Program PREPARED BY:AMANDA COX Utilities Account Representative DEPARTMENT HEAD: CITY 5~A_NAGER APPROVAL: VAL’ERIE FONG Director of l~filt~es Assistant City Manager CMR:344:07 Page 4 of 4 Attachment A MEMORANDUM OF UNDERSTANDING BETWEEN THE SANTA CLARA VALLEY WATER DISTRICT AND THE CITY OF PALO ALTO FOR RESIDENTIAL AND COMMERCIAL WATER CONSERVATION PROGRAMS Fiscal Year 2007 - 2008 This MEMORANDUM OF UNDERSTANDING (MOU) between the Santa Clara Valley Water District (hereinafter referred to as DISTRICT) and the City of Palo Alto (hereinafter referred to as PALO ALTO) sets forth the respective roles of the DISTRICT and PALO ALTO in regard to the DISTRICT’S RESIDENTIAL AND COMMERCIAL WATER CONSERVATION PROGRAMS (hereinafter referred to as PROGRAMS) is made and entered into as of ,2007. RECITALS WHEREAS the PROGRAMS involve providing a variety of strategic residential and commercial water conservation programs (see APPENDIX A); and WHEREAS these water conservation PROGRAMS are appropriate Best Management Practices for residential, commercial, industrial and institutional accounts addressed in the MOU regarding Urban Water Conservation in California; and WHEREAS Palo Alto wishes to participate in said PROGRAMS; NOW, THEREFORE, in consideration of the recitals and mutual obligations of the parties herein expressed, DISTRICT and PALO ALTO agree as follows: 1.DISTRICT’S RESPONSIBILITIES a)Administration of PROGRAMS 1 through 10 (see APPENDIX A). b)Collection of data to determine usage and water savings. Data will be put together by the DISTRICT and provided to PALO ALTO. c)Administration of all PROGRAM funds. d)Invoicing PALO ALTO on a quarterly basis for each of the PROGRAMS ! through 10 (aggregate invoice, broken down by program). e)Work cooperatively with PALO ALTO in appropriately advertising the PROGRAMS 1 through 10 to targeted customers. f) Meet with PALO ALTO staff on a quarterly basis to discuss the various program statuses and outreach strategies. g) Verification of qualifying installed program measures. 2.PALO ALTO’S RESPONSIBILITIES = a) Identification and notification of all prospective Palo Alto participants in all PROGRAM offerings. b)Work cooperatively with DISTRICT in appropriately advertising PROGRAMS to the targeted customers. c)Provide DISTRICT with electric and water usage records and other data necessary to determine savings and cost effectiveness of the various PROGRAMS. d) Pay co-funding amounts as described in APPENDIX A and B for Programs 1 through 10. e) Make payment to DISTRICT within 60 days of receipt of invoice from DISTRICT. CEQA DISTRICT is responsible for assuring that the PROGRAMS comply with the requirements of the California Environmental Quality Act (CEQA) and that all necessary documents have been filed. 4.HOLD HARMLESS AND LIABILITY PALO ALTO and DISTRICT each agree to mutually indemnify, defend at its own expense, including attorneys’ fees, and hold each other harmless from and against all claims, costs, penalties, causes of action, demands, losses and liability of any nature whatsoever, including but not limited to liability for bodily injury, sickness, disease or death, property damage (including loss of use) or violation of law, caused by or arising out of or related to a negligent act, error or omission, or willful misconduct of that party, its officers or employees, or any other agent acting pursuant to its control and performing under this agreement. 5.DOCUMENT REVIEW DISTRICT and PALO ALTO will make available for inspection to the other party, upon reasonable advance written notice, all records, books and other documents relating to the PROGRAMS. 6.TERM The term of the MOU is from September 1, 2007 through June 30, 2008, or not to exceed $442,715. The term of the MOU may be extended by mutual consent of the Parties acting through their authorized representatives. This MOU is contingent upon approval of program funding each fiscal year by the DISTRICT’s Board of Directors and PALO ALTO’s City Council. In the event such contingency is not met, this MOU terminates on the first day of the fiscal year for which funding is not approved. NOTICE Any notice, payment, credit or instrument required or permitted to be given hereunder is deemed received upon personal delivery or five (5) days after deposit in any United States mail depository, first class postage prepaid and addressed to the party for whom intended; or on the same day as a facsimile or email transmission is sent as long as original is placed in the mail, as provided above, on the same day. If to DISTRICT:Santa Clara Valley Water District 5750 Almaden Expressway San Jose, CA 95118-3614 Attn: Karen Morvay, Water Conservation Specialist Facsimile: (408) 979-5639 If to PALO ALTO:City of Palo Alto Utilities 250 Hamilton Ave., 3rd Floor Palo Alto, CA 94301 Attn: Amanda Cox, Utilities Account Representative Facsimile: (650) 617-3140 Either party may change such address or contact person by notice given to the other party as provided herein. 8. AMENDMENTS The MOU may be amended as circumstances necessitate by written agreement executed by both parties. 9.ASSIGNMENT Neither party may assign, sublet, or transfer this agreement or any of the rights or interests in this agreement without the written consent of the other party. 10. SEVERABILITY The partial or total invalidity of one or more parts of this MOU will not affect the intent or validity or remaining parts of this MOU. -2- 11. GOVERNING LAW This MOU will be deemed a contract under the laws of the State of California and for all purposes shall be interpreted in accordance with such laws. 12. TERMINATION OF AGREEMENT This MOU may be terminated by either party hereto for any reason upon thirty- (30) days written notice to the other Party. t3. SIGNATURES The individuals executing this MOU represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. In WITNESS WHEREOF, the parties have executed this MOU as of the effective date. CITY OF PALO ALTO, CALIFORNIA APPROVED AS TO FORM: Grant Kolling Senior Assistant City Attorney ATTEST: Valerie Fong Director, City of Palo Alto Utilities Frank Benest City Manager Address: 250 Hamilton Ave., 3rd FI. Palo Alto, CA 94301 Telephone: 650.329.2241 Facsimile: 650.617.3140 SANTA CLARA VALLEY WATER DISTRICT APPROVED AS TO FORM: EMILY J. COTE Assistant District Counsel STANLEY M. WILLIAMS Chief Executive Officer Address: 5750 Almaden Expressway San Jose, CA 95118 Telephone: 408.265.2600 Facsimile: 408.267.3127 California Urban Water Conservation Council’s Best Management Practices Attachment B BMP 1 BMP 2 BMP 3 BMP 4 BMP 5 BMP 6 BMP 7 BMP 8 BMP 9 BMP 10 BMP 11 BMP 12 BMP 13 BMP 14 Residential Water Surveys Indoor and outdoor home water audits for residential customers Residential Plumbing Retrofits Distribution or installation of water-saving devices in pre-1992 residences System Water Audits Unaccounted for water calculated annually and distribution system audits as required Metering with Commodity Rates Metering of consumption and billing by volume Large-Landscape Conservation Surveys for sites with one acre or more of irrigated landscape and ET based water budgets High Efficiency Clothes Washers Rebates for efficient clothes washing machines Public Information Public Information and outreach to promote water conservation School Education Provision of educational materials and services to schools Industrial, Commercial, and Institutional Conservation Programs to increase water use efficiency in CII sectors Wholesale Agency Assistance Support by wholesalers for conservation programs of retail water suppliers Conservation Pricing Uniform or increasing block rate structure, volume-related sewer charges, and service cost recovery Conservation Coordinator Designation of agency person to manage conservation programs Water Waste Prohibition Enforced prohibition of wasteful use of water Residential ULFT/HET Replacement Programs promoting replacement of high water using toilets with ultra- low flow or high-efficiency toilets Appendix A - Water Conservation Programs Attachmen~~t Program 1 Water-Wise House Call Program Program 2 ET Controfler Rebate Program Program 3 Residential High Efficiency Toilet Rebate Program Program 4 Irrigation Technical Assistance Program (ITAP) Program 5 Commercial & MF High-Efficiency Toilet Installation Program Program 6 Commercial Clothes Washer Rebate Program Program 7 Residential Clothes Washer Rebate Program Program 8 Marketing & Outreach Program 9 Large Commercial Indoor Water Survey Program Program 103 Water Efficient Landscape Rebate Program BMP1 Residential Water Surveys BMP 5 Landscape Conservation BMP 14 Residential Toilet Replacement BMP 5 Landscape Conservation BMP 9 CII Conservation BMP 9 CII Conservation BMP 6 High Efficiency Clothes Washers BMP 7 Public Information BMP 9 CII Conservation BMP 5 Landscape Conservation Residential Residential & Commercial Residential Commercial Commercial & Multi- Family Commercial & Multi- Family Residential Residential & Commercial Commercial Residential & Commercial Program provides free site surveys to single-family homes and multi- family dwellings. Survey includes an interior evaluation (showerheads, aerators, and/or flappers will be replaced when needed) and a landscape irrigation evaluation that includes a watering schedule. Program provides a rebate for ET Controllers for residential and commercial landscapes with functioning irrigation systems. Program provides a $125 rebate for the replacement of old 3.5 gallons per flush or higher toilets with High Efficiency Toilets (1.28 gallons per flush or less and dual-flush toilets). Program provides free site evaluations to assist property owners in better managing their water use and improve irrigation efficiency. Sites must have at least one acre of irrigated landscape to participate. Program provides full service toilet replacement program to commercial facilities and multi-family apartment units. Program provides rebates for the purchase of qualifying commercial high-efficiency clothes washers in laundromats and common-area laundry rooms. Program provides tiered rebates to residents for purchasing a high- efficiency clothes washer. Use of direct mail marketing and newspaper advertisements to market conservation programs. Program provides free indoor water surveys to large commercial, industrial or institutional customers to evaluate potential water savings and efficiency measures. Program provides matching rebates for replacing turf with drought tolerant plants and/or permeable hardscape. Rebates for residential and commercial projects. ~ll=Commercial, Industrial and Institutional Department of Water Resources grant funding through October 2008 Department of Water Resources grant funding to start early 2008 Program budgeted for only two years SCVVVD & CPAU ’ Grantl/SCVWD/CPAU SCVVVD & CPAU SCVWD & CPAU Grant~/SCVVVD/CPAU SCVVVD/CPAU Grant2/SCVWD/CPAU SCWD & CPAU SCVWD & CPAU SCVWD & CPAU TOTAL $ 25,280 $ 5,000 $ 3,750 $ 12,750 $ 33,750 $ 3,500 $ 16,875 $ 5,000 $ 15,000 $40,000 $160,905 Appendix B City of Palo Alto & Santa Clara Valley Water District Cost-Sharing Amounts Santa Clara Valley Water District Administers: Program 7 Program 8 Program 9 Program 104 Residential Clothes Washer Rebate Program Proposed Number to be 450 per FY Palo Alto Measure Level 1’ $37.50 Level 2:$37.50 $16,875 per FY Cost Level 1 : SCVWD $37.50 CPA $37.5O DWR $253 = $100 Rebate Level 2: SCVWD $37.50 PA $37.50 DWR $753 = $150 Rebate TOTAL = $16,875 Marketing and Outreach Large Commercial Indoor Water Surveys Water Efficient Landscape Rebate Program Ongoing throughout FY 15 per FY 10 Residential Sites per FY 3 Commercial Sites per FY $1,000 $40,000 $5,000 per FY $15,000 per FY $40,000 per FY TOTAL = $5,000 TOTAL = $15,000 Residential: SCVWD $1,000 CPA $1,000 = $2,000 rebate Commercial: SCVWD $10,000 CPA $10,000 = $20,000 rebate TOTAL = $40,000 Attachment D Estimated Annual 8.5 CCF/washer 1,402 CCF/site Estimated 30% reduction during peak irrigation months Department of Water Resources grant available until funds are depleted. SCVWD and CPAU will make up the difference if exhausted. Program budgeted for only two years at $40,000 per FY. After two years, SCVWD will re-evaluate program for savings and determine whether to continue administering the program. Page 2 of 2