HomeMy WebLinkAboutStaff Report 3744
City of Palo Alto (ID # 3744)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/3/2013
City of Palo Alto Page 1
Council Priority: Environmental Sustainability
Summary Title: MOU with the SCVWD for Water Conservation Programs
Title: Recommendation that the City Council Approve a Memorandum of
Understanding with the Santa Clara Valley Water District for the
Administration and Funding of Water Conservation Programs
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that Council approve and authorize the City Manager or designee to execute
the attached Memorandum of Understanding (MOU) with the Santa Clara Valley Water District
(SCVWD) to provide for continued administration of and funding for, water conservation and
efficiency programs from fiscal years 2014 through 2016 at a cost of up to $245,305 per year for
a total of $735,915 over the three-year period.
Executive Summary
To achieve the water conservation and efficiency objectives of state and local mandates, the
City of Palo Alto Utilities (CPAU) partners with agencies, such as the Santa Clara Valley Water
District (SCVWD) and Bay Area Water Supply and Conservation Agency (BAWSCA), to offer
many conservation programs and services to Palo Alto residential and commercial water
customers.
The proposed MOU between CPAU and SCVWD continues the joint effort to administer and
deliver cost-effective water programs and services including rebates for residential and
commercial sanitary fixtures, high water-use landscape replacement, free conservation devices,
indoor and outdoor water efficiency surveys, irrigation hardware upgrades, and residential
educational workshops.
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The MOU will also implement two new programs designed to reduce both commercial and
residential water use through efficient landscape irrigation practices.
Background
State requirements and Council policies have directed the City to achieve water reduction goals
through community-wide conservation and efficiency programs. The programs included in this
MOU have been selected to assist the City with meeting these goals. As part of the overall
water conservation effort, CPAU and the SCVWD have partnered for many years to promote
and cost-share water conservation programs. Over time, these programs have evolved or
expanded concurrent with advancements in water-saving technologies and best practices for
water-efficient program delivery. CPAU’s goal is to identify and implement the most innovative
technologies and cost-effective programs to best utilize the annual water conservation
operating budget.
The guiding document for water utility efficiency goals is the Urban Water Management Plan
(UWMP). The UWMP is updated every five years and outlines the long-term supply and
demand-side issues and policies impacting the water utility. The UWMP also details the
measures CPAU will take to reach its water reduction goals, through a series of Demand
Management Measures, most of which are included in the proposed MOU. These Demand
Management Measures are consistent with the Best Management Practices (BMP) developed
by the California Urban Water Conservation Council (CUWCC). In December 1991, the City was
an early signatory to the CUWCC Memorandum of Understanding regarding urban water
conservation in California (CMR 550:91). Staff continues to report to CUWCC on these BMPs
roughly every two years. The next BMP report will be developed by the end of calendar year
2013.
In 2009, the Water Conservation Act (SBx7-7) directed urban water suppliers to develop targets
and methods to reduce statewide per capita water use 20% by the year 2020. These water
reduction targets and methodology were to be included in each water suppliers’ 2010 UWMP.
In order to track progress toward meeting these goals, a 10% water reduction target must be
included in the 2015 UWMP. In 2010, Council also approved a Colleagues’ Memo directing the
City Manager to explore ways to reduce potable water use in Palo Alto by 20% by 2020 (CMR
212:10).
Discussion
For over a decade SCVWD has delivered water conservation programs to residents and
businesses throughout Santa Clara County. Through earlier MOUs adopted in September 2002
(CMR 359:02), September 2007 (CMR 344:07), and April 2009 (CMR 200:09), the City Council
had approved the delivery of water conservation and efficiency programs co-marketed by CPAU
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and SCVWD to the homes and businesses of Palo Alto.
CPAU staff also administers several water conservation programs in-house. Under the Smart
Energy Rebate program, residential clothes washer rebates are delivered directly by CPAU to
Palo Alto residents, with SCVWD reimbursing CPAU for the water efficiency portion of the
combined water and energy rebate. Later this year, CPAU will also begin delivering Home
Water Reports to residents in conjunction with the Opower Home Energy Reports. This
additional water data will include information on water uses and tips and programs to improve
water efficiency.
Under the proposed MOU, most audits and rebates will continue to be delivered by the
SCVWD, with CPAU matching payments to customers who reduce water usage. Palo Alto
residents and businesses will be eligible to receive a slightly higher incentive than that from
other water retailers in Santa Clara County for retrofits such as high water using landscape
conversion and custom facility process improvements for water efficiency. A new, innovative
program included in this MOU will encourage conservation at large commercial landscape sites
through preparation and use of customized irrigation water budgets and performance rankings
for irrigation efficiency. Residents will also have a new financial incentive to reduce potable
water landscape irrigation with rebates for laundry-to-landscape gray water systems.
The programs, their targets, and their budgets in the proposed MOU are detailed in Appendix A
of the attachment. These program targets are goals only; funding is interchangeable and
useable by any of these programs as needed and agreed upon by the SCVWD and CPAU. The
implementation and administrative functions for these programs (e.g. scheduling, budget
tracking and invoicing, contractor oversight, customer service, and project reporting associated
with program implementation) are done by SCVWD staff. Customer support, marketing and
water savings reports are performed by CPAU staff.
Resource Impact
The funding for the first year of the programs to be delivered under the MOU with SCVWD is
included in the FY 2014 Water Fund Operating Budget.
Subsequent annual funding requests for MOU programs will be included in the budget requests
for FY 2015 and FY2016.
Policy Implications
This recommendation is consistent with the Council approved Utilities Strategic Plan Key
Strategy 6: “Provide targeted customer and environmental programs and service” and the
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Council Policy to reduce water usage by 20% by 2020 (CMR:212:10). This recommendation is
also consistent with adoption of the 2010 Urban Water Management Plan.
Environmental Review
The approval of this MOU is categorically exempt from the California Environmental Quality Act
(CEQA) pursuant to Public Resources Code Sections 15307 (Actions by Regulatory Agencies for
Protection of Natural Resources) and 15308 (Actions by Regulatory Agencies for Protection of
the Environment). The SCVWD is the lead agency with respect to programs covered by the
MOU.
Attachments:
Attachment A: Memorandum of Understanding (MOU) (PDF)
MOU SCVWD/Palo Alto, Water Conservation Programs, 2014‐2016 Page 1
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 2014-2016
This MEMORANDUM OF UNDERSTANDING (MOU) between the Santa Clara Valley Water District, an independent
special district created by the California Legislature (hereinafter referred to as WATER DISTRICT), and the City of
Palo Alto (hereinafter referred to as PALO ALTO) sets forth the respective roles of the WATER DISTRICT and PALO
ALTO in regard to the WATER DISTRICT’S and PALO ALTO’S RESIDENTIAL AND COMMERCIAL WATER
CONSERVATION PROGRAMS (hereinafter referred to as PROGRAMS) becomes effective as of
, 2013. WATER DISTRICT and PALO ALTO may be individually referred to individually as “PARTY”
or jointly as “PARTIES” hereinafter.
RECITALS
WHEREAS the PROGRAMS involve providing Water Conservation services and rebates for properties located within
PALO ALTO’s service area;
WHEREAS these water conservation PROGRAMS are appropriate measures for the Best Management Practices
addressed in the California Urban Water Conservation Council’s memorandum of understanding regarding Urban
Water Conservation in California;
WHEREAS the WATER DISTRICT and PALO ALTO have established these PROGRAMS to provide information on
how to use water most efficiently; and
WHEREAS the WATER DISTRICT and PALO ALTO wish to participate in these PROGRAMS.
NOW, THEREFORE, in consideration of the recitals and mutual obligations of the PARTIES expressed in this MOU,
WATER DISTRICT and PALO ALTO agree as follows:
1. WATER DISTRICT’S RESPONSIBILITIES:
a) Administer PROGRAMS 1 through 7 (see Appendix A: Programs, Targets and Budgets).
b) Collect data to determine usage and water savings resulting from PROGRAMS 1 through 7. Data for
PROGRAMS 1 through 7 will be put together by DISTRICT and provided to PALO ALTO.
c) Administer funds for PROGRAMS 1 through 7.
d) Invoice PALO ALTO on a quarterly basis for each of the PROGRAMS 1 through 7 (aggregate invoice, broken
down by program).
e) Work cooperatively with PALO ALTO in appropriately advertising PROGRAMS to targeted customers.
f) Verify qualifying installed program measures for PROGRAMS 1 through 7.
g) Pay co-funding amounts for PROGRAMS 8 and 9.
h) Make payment to PALO ALTO within sixty (60) calendar days of receipt of invoice from PALO ALTO for
funding amounts for PROGRAMS 8 and 9.
i) WATER DISTRICT’s obligation to pay for the activities is capped at a maximum of $164,625.
2. PALO ALTO’S RESPONSIBILITIES:
a) Administer PROGRAMS 8 and 9 (see Appendix A: Programs, Targets and Budgets).
b) Provide WATER DISTRICT with water usage records and other data necessary to determine savings and
cost effectiveness of the PROGRAMS. Water usage records for individual accounts will only be made
available to WATER DISTRICT for those account holders who have authorized the WATER DISTRICT to
obtain the information from PALO ALTO.
c) Collect data to determine electric and water usage and savings resulting from PROGRAMS 8 and 9 and
provide it to WATER DISTRICT. Data for PROGRAMS 8 and 9 will be put together by PALO ALTO and provided
to WATER DISTRICT.
d) Administer funds for PROGRAMS 8 and 9.
MOU SCVWD/Palo Alto, Water Conservation Programs, 2014‐2016 Page 2
e) Invoice WATER DISTRICT on a quarterly basis for PROGRAMS 8 and 9.
f) Work cooperatively with WATER DISTRICT in appropriately advertising PROGRAMS to targeted customers.
g) Verify qualifying installed program measures for PROGRAMS 8 and 9.
h) Pay co-funding amounts for PROGRAMS 1 through 7 as specified in APPENDIX A.
i) Make payment to the WATER DISTRICT within sixty (60) calendar days of receipt of invoice from WATER
DISTRICT for funding amounts for PROGRAMS 1 through 7.”
j) PALO ALTO’s obligation to pay for the activities is capped at a maximum of $735,915.
3. HOLD HARMLESS AND LIABILITY
Each Party (“Indemnifying Party”) agrees to indemnify, defend at its own expense, including attorneys’ fees, and
hold harmless the other Party (“Indemnified Party”) 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 the negligence, or willful misconduct of that Indemnifying Party, its officers or employees, or any
other agent acting pursuant to this MOU.
4. DOCUMENT REVIEW
WATER 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.
5. TERM
The term of the MOU is from July 1, 2013 through June 30, 2016. 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 WATER 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.
6. NOTICE
Any notice, payment, credit or instrument required or permitted to be given hereunder is deemed received upon
personal delivery or five (5) calendar 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 WATER DISTRICT: Santa Clara Valley Water District
5750 Almaden Expressway
San Jose, CA 95118-3614
Attn: Jerry De La Piedra, Program Administrator
Facsimile: (408) 979-5639
If to PALO ALTO: City of Palo Alto Utilities
250 Hamilton Ave., 3rd Floor
Palo Alto, CA 94301
Attn: Catherine Elvert, Utility Account Representative
Facsimile: (650) 617-3140
Either party may change such address or contact person by notice given to the other party as provided in this
Section 6.
7. AMENDMENTS
The MOU may be amended by written agreement executed by both PARTIES.
8. ASSIGNMENT
MOU SCVWD/Palo Alto, Water Conservation Programs, 2014‐2016 Page 3
Neither PARTY is allowed to assign, sublet, or transfer this MOU or any of the rights or interests in this MOU
without the written consent of the other PARTY.
9. 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.
10. GOVERNING LAW
This MOU will be deemed a contract under the laws of the State of California and for all purposes must be
interpreted in accordance with such laws.
11. TERMINATION OF AGREEMENT
This MOU may be terminated by either party hereto for any reason upon thirty (30) calendar days written notice to
the other Party.
12. 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:
Marybelle C. Ang James Keene
Senior Assistant City Attorney City Manager
ATTEST: Address:
250 Hamilton Ave., 3rd Fl.
Valerie Fong Palo Alto, CA 94301
Director, City of Palo Alto Utilities Telephone: 650.329.2241
Facsimile: 650.617.3140
SANTA CLARA VALLEY WATER DISTRICT
an independent special district created by the California Legislature
APPROVED AS TO FORM:
____________________________ _________________________
ANTHONY FULCHER BEAU GOLDIE
Senior Assistant District Counsel Chief Executive Officer
Address:
5750 Almaden Expressway
San Jose, CA 95118
Telephone: 408.265.2600
Facsimile: 408.267.3127
MOU SCVWD/Palo Alto, Water Conservation Programs, 2014‐2016 Page 4
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 2014-2016
Appendix A: Programs, Targets and Budgets
The programs, their targets, and their budgets in the proposed MOU are detailed
below.
Program
Designation
Program
Description
Proposed
Number Per
Year in Palo
Alto
Palo Alto
Cost
Per Measure
Annual
Palo Alto
Program
Cost
Total
Program Cost
for Palo Alto
(for 3 years)
Program 1
Water-Wise
House Call
Program
300 per Fiscal
Year
$50 – Audit $15,000
$45,000 for
audits;
$11,340 for
admin.
$315 – Monthly
Administration $3,780 TOTAL =
$56,340
Program 2
Landscape
Water Use
Evaluation
Program and
Landscape
Field
Surveys
50 sites per
Fiscal Year
Initial Water
Budget Per Site:
$72.50
$32,225 TOTAL =
$96,675
Monthly Water
Budget Per Site
Per Year: $36
Landscape Field
Survey (20%
sites): $700
MOU SCVWD/Palo Alto, Water Conservation Programs, 2014‐2016 Page 5
Program
Designation
Program
Description
Proposed
Number Per
Year in Palo
Alto
Palo Alto
Cost
Per Measure
Annual
Palo Alto
Program
Cost
Total
Program Cost
for Palo Alto
(for 3 years)
Program 3
Landscape
Rebate
Program
LRP:
Weather
Based
Irrigation
Controller
Rebates
25 per FY
Up to $150:
1-12 stations
$5,000
TOTAL =
$15,000
Up to $350:
13-24 stations
Up to $500:
25+ stations
LRP:
Landscape
Conversion
Rebates
30 Residential
Sites per FY
Up to $1,000 per
residential site
$100,000
TOTAL =
$300,000
7 Commercial
Sites per FY
Up to $10,000 per
commercial site
LRP:
Irrigation
Hardware
Upgrade
Rebates
10 Residential
Sites per Fiscal
Year 50% of total
rebate—up to
$500 per
residential site
and $2,000 per
commercial site
$7,375 TOTAL =
$22,125 3 Commercial
Sites per Fiscal
Year
Program 4
High
Efficiency
Toilet Rebate
Program
(Tiered rebate –
Higher rebate for
3.5 gpf and
Lower rebate for
old ULFTs)
200 High Tier,
100 Low Tier
per Fiscal Year
50% of total
rebate $16,250 TOTAL =
$48,750
MOU SCVWD/Palo Alto, Water Conservation Programs, 2014‐2016 Page 6
Program
Designation
Program
Description
Proposed
Number Per
Year in Palo
Alto
Palo Alto
Cost
Per Measure
Annual
Palo Alto
Program
Cost
Total
Program
Cost for
Palo Alto
(for 3 years)
Program 5
Commercial
& Multi-
Family High-
Efficiency
Toilet &
Urinal Flush
Valve
Installation
Program
150 per Fiscal
Year
$150 per HET
$75 per urinal
flush valve
$22,500 TOTAL =
$67,500
Program 6
Graywater
Rebate
Program
25 per year 50% of total
rebate $2,500 Total = $7,500
Program 7
Commercial
Rebate
Program
(CRP)
CRP:
Commercial
Clothes
Washer
Rebate
Program
10 per Fiscal
Year $200 $2,000
TOTAL =
$6,000
CRP:
Connection-
less food
steamers
10 per FY
50% of total
rebate (rebates
are $485 per
compartment)
$2,425 TOTAL =
$7,275
CRP: Air-
Cooled Ice
Machines
10 per FY
50% of total
rebate (rebates
are up to $1,000
per machine)
$5,000 TOTAL =
$15,000
CRP:
Measured
Rebates
(WET)
5 per FY 50% of total
rebate $25,000 TOTAL =
$75,000
CRP:
High-
Efficiency
Urinals
25 per Fiscal
Year
Up to $250 per
urinal $6,250 TOTAL =
$18,750
City of Palo Alto Total per Fiscal Year $245,305
City of Palo Alto Total for Three Years $735,915
MOU SCVWD/Palo Alto, Water Conservation Programs, 2014‐2016 Page 7
Program
Designation
Program
Description
Proposed
Number Per
Year in Palo
Alto
District
Cost
Per Measure
Annual
District
Program
Cost
Total
Program
Cost for
District
(for 3 years)
Program 8
Residential
High-
Efficiency
Clothes
Washer
Rebate
Program
450 per fiscal
year
$37.50 per
washer $16,875 TOTAL =
$50,625
Program 9
Residential
Water Report
Program
80,000 per year $0.45 per report
1st year set
up cost
$6,000 $114,000
$36,000
NOTE: These are goals only, funding for these programs is interchangeable and useable by any
of these programs as needed and agreed upon by the DISTRICT and PALO ALTO.
Santa Clara Valley Water District Total Per Fiscal Year = $58,875
Santa Clara Valley Water District Total for Three Years = $164,625