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Home My WebLink About2002-09-09 City CouncilCity of Palo C ty Manager’s Rep r TO:HONORABLE CITY COUNCIL FROM: DATE: SUBJECT: CITY MANAGER DEPARTMENT: UTILITIES SEPTEMBER 9, .2002 CMR:359:02 APPROVAL’ OF MEMORANDUM OF UNDERSTANDING WITH S)kNTA CLARA VALLEY WATER DISTRICT (SCVWD) TO IMPLEMENT A WATER CONSERVATION PROGRAM PARTNERSHIP IN THE AMOUNT OF $106,480. RECOMMENDATION Staff recommends that Council: Approve the Memorandum of Understanding (MOU) between .City of Palo Alto and SCVWD to promote and implement water conservation programs for Palo Alto residents and utility customers for FY 2002/03 at an annual cost of $106,480. 2.A~thorize the City Manager or his designee to exercise the option to renew the program partnership for the following FY 2003/04, provided funds are available and included in that year’s Water Fund operating budget. BACKGROUND In December 1991, staff requested Council approval of a Memorandum of Understanding with the California Urban Water Conservation Council (CUWCC) promoting implementation of the Best Management Practices (CMR:550:91). The Best Management Practices (BMPs) are a list of 14 water conservation programs and CMR:359:02 Page 1 of 5 strategies. To date, the City has fully implemented 6 of the 14 BMP (Attachment B) strategies, including: o BMP 3, System Water Audits ¯BMP 4, Meter Connections and Retrofit Existing ®13MP 6, High Efficiency Washing Machines ¯BMP 7, Public Information Program ¯BMP 11, Conservation Pricing ¯BMP 12, Conservation Coordinator The remaining 8 water conservation programs have not been implemented for several reasons: The programs are staff resource intensive. Current staffing resources are insufficient. to implement the programs adequately. Full implementation of the remaining programs would necessitate the hiring of additional staff. Program implementation would cause an upward impact on water rates in order to pay for additional resources. If all the BMPs are implemented at the same. time, water revenue will be impacted because of declining consumption through conservation. The high cost of program implementation was a barrier. DISCUSSION Although the BMPs are not currently mandatory, they may become mandatory within the next couple years as a result of legislation being propQsed for the 2003 legislative. session. Continuing to move toward full implementation of the BMPs with the cooperation of the SCVWD appears to be timely and appropriate. The City proposes to partner with the SCVWD to implement water conservation programs. Staff sees the following advantages to partnering with SCVWD: Partnering with the SCVWD will significantly lower the cost of implementing the water conservation programs because SCVWD infrastructure is already in place, with adequate staffing and technical expertise. CPAU is presently collaborating with the SCVWD to providerebates for commercial washing machines. The experience from this collaboration has been positive and is a significant reason for seeldng to expand the collaboration t0 include additional conservation services. CMR:359:02 Page 2 of 5 Leveraging technical expertise between the organizations Minimizing program start-up costs Reducing demands on City staffing resources implementation associated with in-house This unique partnership involves SCVWD staff worldng directly with Palo Alto residents on a number of programs. The total cost of the programs is approximately $209,575. Of that amount, CPAU is directly contributing $106,480 (Attachment C). 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. There are a total of 8 programs (7 .water conservation programs and one marketing and outreach program, Attachment D) that SCVWD will be administering and implementing for CPAU. The water conservation programs will be implemented from the SCVWD office in San Jose. SCVWD will perform most of the administrative functions for these programs (e.g. scheduling, budget tracking and invoicing, contractor oversight, customer service, and project reporting associated with program implementation.) SCVWD will provide staffing resources to implement the seven programs. The Marketing and Outreach Program will be a collaborative effort between SCVWD and CPAU. CPAU staff will take the lead role in the marketing and outreach efforts. The following table provides a summary of the water ~onsebcation programs to be implemented with SCVWD. CMR:359:02 Page 3 of 5 CPAU/SCVWD Program Designation Program I Program II Program III Program IV Program V Program VI Program Name Residential Interior/Exterior Water Audits Low Income, Elderly & Disabled Residential Ultra Low Flush.Toilet (ULFT) Multi-Family Dwelling (MFD) Ultra Low Flush Toilet (ULFT Irrigation Technical Assistance (ITAP) Commercial Ultra Low Flush Toilet (ULFT) Commercial Washing Machine Rebate Best Management Practices Designation BMP 1, Water Surveys BMP 14, Residential ULFT Programs BMP 14, Residential ULFT Programs BMP 5, Large Landscape Conservation/Incentives BMP 9, Commercial, Industrial, Institutional Programs BMP 9, Commercial, Industrial, Institutional Programs Program VII Pre-rinse Spray Valve BMP 9, Commercial, Installation Industrial, Institutional Programs Program VIII Marketing and Outreach BMP 7, Public Program Information Program Program Description This program provides free site surveys to residential dwellings. SCVWD staff will conducta survey that will include an interior evaluation. Replace old fixtures with water saving devices such as showerheads, aerators and toilet flappers. An exterior evaluation that includes a watering schedule for landscaping will also be provided. Afull service toilet replacement program for qualifying Palo Alto residents. SCVWD designated contractor will come out to residents home and remove the old toilet arid install a water conserving toilet free of charge. A full service toilet replacement program wherein participants pay a nominal fee ($15 per toilet) for each toilet replaced for MFDs (2+units). Condominiums & town homes are excluded. SCVWD designated contractor will replace the old toilet with a water-conserving fixture. Program provides free site evaluations to assist property owners in better managing their water use and improve their irrigation efficiency. SCVWD staff or designated contractor will conduct the audit. Program provides full service toilet replacement program for a fee to high end use commercial facilities such as restaurants, food stores and gas stations. SCVWD designated contractor will replace the old toilet with a water-conserving fixture. Program provides cash rebates for the purchase of ¯ qualifying commercial grade high-efficiency clothes washers. SCVWD will accept applications and process and disburse rebate checks to Palo Alto customers. Program provides high-efficiency pre-rinse spray valves to restaurants and kitchens. SCVWD staff or designated contractor will disburse valves to Palo Alto customers. A collaborative effort that CPAU will lead. RESOURCE IMPACT Funds for the programs in the amount of $106,480 are included in the FY 2002/03 Water Fund operating budget. Implementation of the proposed conservation programs will slightly reduce the City’s water consumption and thus reduce water revenues to the utility. However, implementing these water conservation programs will decrease Palo Alto’s ~usceptibility to future water shortages by reducing water consumption and leaving more water available during future water shortages. The San Francisco Public Utilities Commission (SFPUC) and the wholesale customers of the regional water system (including Palo Alto) signed the Interim Water Shortage Allocation Plan (IWSAP) in 2001.The IWSAP CMR:359:02 Page 4 of 5 establishes a fixed percentage of water to be provided to all wholesale customers during a future drought. Thus, conserving water ’in Palo Alto may reduce the severity of future cutbacks that Palo Alto customers will face in a future drought. POLICY IMPLICATIONS. This recommendation is consistent with the Council approved Utilities Strategic Plan, specifically: Supporting Objective No.l, Enhance customer satisfaction by delivering valued products and services, Key Strategy No.7, Implement programs that improve the quality of the environment and, ®City’s Comprehensive Plan N-24, Maintain citywide water conservation and efficiency programs for all customer classes. ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act (CEQA). ATTACHMENTS A:Memorandum of Understanding B:List of Best Management Practices C:Appendix I: Co-Funding Amounts D:Appendix II: Detail Program Description PREPARED BY: Anthony C. Ener Utilities Account DEPARTMENT HEAD: of Utilities CITY MANAGER APPROVAL: HARRISON Assistant City Manager CMR:359:02 Page 5 of 5 MEMORANDUM OF UNDERSTANDING BETWEEN THE SANTA CLARA VALLEY WATER DISTRICT AND THE CITY OF PALO ALTO FOR RESIDENTIAL AND COMMERCIAL WATER CONSERVATION PROGRAMS 2002=2003 FY 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 October 1, 2002. RECITALS WHEREAS the .PROGRAMS involve providing Ultra Low Flow Toilets (ULFTs) to qualifying commercial and residential customers, Water Audits to residential customers, Irrigation Technical Assistance Program evaluations, Commercial Clothes Washer Rebates, Pre-Rinse Sprayer Valves to restaurants, and conducting marketing and outreach (See APPENDIX II); 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 I, II, III, IV, V, Vl, VII, VIII (see APPENDIX II). b)Collection of data to determine usage and water savings. Data will be put together by the SCVWD and provided to PALO ALTO.._ c)Administration of all PROGRAM funds. d)Invoicing PALO ALTO on a quarterly basis for each of the PROGRAMS (aggregate invoice, broken down by program). e)Work cooperatively with PALO ALTO in appropria!ely advertising the PROGRAMS to targeted customers. f)Meet with PALO ALTO staff on a quarterly basis to discuss the various program status 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 the PROGRAM to the targeted customers. c)Provide DISTRICT with electric and water usage records and other data necessaryto determine savings and cost effectiveness of the various PROGRAMS. d) PALO ALTO agrees to pay co-funding amounts as described in APPENDIX 1. e) Make payment to DISTRICT within 60 days of receipt of invoice from DISTRICT. CEQA DISTRICT shall be 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 an 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. 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 shall be from October 1, 2002 through June 30, 2003, or until funds are depleted. The term of the MOU may be extendedby mutual consent of the Parties to accommodate the collection of data. This MOU shall be 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 shall terminate at the beginning of the fiscal year for which funding is not approved. 7. NOTICE Any notice, payment, credit or instrument required or permitted to be given hereunder shall be 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 on the same day. If to DISTRICT:Santa Clara Valley Water District 5750 Almaden Expressway SanJose, CA 95118-3614 Attn: Karen Morvay, water Conservation Specialist Facsimile: (408) 267-3127 Email: kmorvay@valleywater.org If to PALO ALTO:City of Palo Alto Utilities 250 Hamilton Ave, 3rd FI. Palo Alto, CA 94301 Attn: Anthony C. Enerio, Utilities Account Representative Facsimile: (650) 617-3140 Email: anthony_enerio@city-palo.alto.ca.us 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. ASSIGNMENT Neither party shall assign, sublet, or transfer this agreement or any of the rights or interests in this agreement without the written consent of the other party. 2 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. 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. 13. 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, A Chartered California municipal corporation APPROVED AS TO FORM: Grant Kolling Senior Assistant City Attorney ATTEST: John Ulrich Director, City of Pal Alto Utilities Frank Benest City Manager Address: 250 Hamilton Ave., 3rd FI Palo Alto, CA 94301 Telephone: 650.329,2241 Facsimile: 650.617.3140 APPROVED AS TO FORM: . COTE Assist~[ht General Counsel SANTA CLARA VALLEY WATER DISTRICT, A California nonprofit corporation WILLIAMS Chief sutive Officer Address: 5750 Almaden Expressway San Jose, CA 95118 Telephone: 408.265.2600 Facsimile: 408.267.3127 Attachment B Best Management Practices 1.Water Surveys Programs for Residential and Multi-Family Customers 2.Residential Plumbing Retrofit (for pre-1992 Buildings) 3.System Water Audits, Leak Detection and Repair 4.Metering with Commodity Rates for all New Connections and Retrofit Existing Connections 5.Large Landscape Conservation Programs and Incentives 6.High-Efficiency Washing Machin~ Rebate Programs 7.Public Information Program 8.School Education Program (K-3; 4-6; 7-8, HS) 9.Conservation Programs for Commercial, Industrial, and Institutional (CII) Accounts 10.Wholesale AgencyAssistance Programs 11.Conservation Pricing 12.Conservation Coordinator 13.Water Waste Prohibition 14. Residential ULFT Replacement Programs Appendix I Co-funding Amounts Program Designation Program I Program II Program 11I Program IV Program V Program VI Program VII Program Description Residential Interior/Exterior Water Audits Low Income, Elderly, Disabled Residential Ultra Low Flow Toilet (ULFT) Program Multi-Family Dwelling (MFD) Ultra Low Flow Toilet Program Irrigation Technical Assistance Program (ITAP) Commercial Ultra Low Flow Toilet (ULFT) Program Commercial Washing Machine Rebate Program Pre-rinse spray valve installation Proposed Number to be Accomplished Per Year 50 175 200 10 50 5O 100 CPA U Cost- Per measure $50- Audit $315 - Monthly Administration $156 $112 $650 $225 Building Permit and Fees $325 $50 Annual CPA U Program Cost $2,500 $3,780 $27,300 $22,400 $6,500 $11,250 $3,000 $16,250 $5,000 Program Cost $50 per MFD audit, $55 per SFD audit, and $6,250/month in admin fees $157 - $207 per installation $112 - $162 per installation $650 - $850 per survey $450 per installation $450 per rebate ($325 CPA + $125 SCVWD), also promotional and admin costs $42 for sprayer, $30 for instan (w/current plumber Estimated Savings per Measure ~Based on the average of 2.64 persons per occupied U.S. household Pre 1980:1188 gal Post 1980:449 gal Pre 1980:3927 gal Post 1980:1340 gal Potential savings of up to 800 cctTacre/year - 45 gpd per ULFT for targeted market segments ~ 38,000 gals/machine/yr 200 gpd for each sprayer, + 2 therms/day Appendix I contract) Marketing and $8,500Program VIII Outreach TOTAL $106,480 o ~> ~ > > 0 0 0 0 0