SR-6-N (41)
6-tJ
CM:CCP:SM:dmccont
Councll Meetlng: July 13, 1993
Santa Mon~ca, Callfornla
lU' 1 ') 1....fG3
... L v 1. J
TO: Mayor and Clty Councll
FROM: Clty Staff
SUBJECT: Recommendatlon to Authorlze the City Manager to
Negotiate and Execute a Contracc w~th The Demand
Management Company (DMC) ln an Amount Not to Exceed
$296,000 Ear Servlces Related to the Bay Saver
Retroflt P~ogram
INTRODUCTION
TnlS repar: recommends that Clty Councll authorlze the Clty
Manage~ to negotlate a~d execute a cor.tract wlth the Demand
Manage~ent Company (DMC) for adnlnlstratlon and lnspectlon
serVlces related to the Bay Saver Retroflt Program for the
per10d July 1, 1993 to J~~e 30, 1994
DISCUSSION
The Bay Saver Retro~lt Prog~am was started In December, 1989
wlth the goal of permanently reduclng long-term water usage
and wastewa~er flows ~n the Clty to avold anticlpated
lTICreaSes ~n prlce for l~~orted water and the substantlal
cost (approxl~ately $9.5 m~ll~on) of purchasing addltlonal
wastewater treatment capaclty a~ the Hyperlon Treatment
P:::"ant.
The lnltlal goal of the progra~, 25 percent of the
resldentlal sector or 19,200 bathrooms, was achleved In two
years.
The goal of the Phase II Bay Save~ Program, adopted
1
6-1{
.1: i_,.; 1 r~ 1'"1 ...
... v ---L 'J J~3j
~n Aprll 1992, 1S to retroflt a second 25 percent of
res~dent~al households {19,200 to~lets) and an ~n~t~al 25
percent (4,000) of co~erclal tOllets. Upon completlon of
Phase II, the Clty wlll have achleved a permanent reduction
~n water usage and wastewater flows of 1.9 mllllon gallons
per day WhlCh represents a 15 percent reductlon ln total
dally water demand and a 19 percent reductlon ln average
total dally wastewater flows. The reductlons ln water usage
w~ll ass~st the Clty ln reduclng lts future rellance on
~nported water supplles and e~hance our ablllty to cope wlth
future water shortages.
Fundln~ for the progra~ 15 currently provlded through the
Metropolltan Water Dlstrlct Conservatlon Credlts Program, the
Bay Saver I~centlve Fee, and Water Demand Mltlgatlon fees.
To reduce overall program costs for Phase II, the Clty
lowered the rebate aTount :rom $100 to $75 and ralsed the
Clrect lDstallatlon customer co-pa~ent from $25 to $35
Uncer the proposed one year contract wlth DMC, payments from
the Clty wlll be based on a per rerroflt rate of $37. The
C1CY wlll not be charged a flxed monthly management fee.
Under the term5 of the cor.tract, DMC wlll h1re a marketlng
specla:~st and provlde mar~et~ng serVlces to stlmulate
partic~patlon 1n the Bay Saver Prog~am. It is antlcipated
that up to 8,000 commerclal and res1dentlal tOllets wlll be
retrofl~ted durlng the contract perlod from July I, 1993 to
2
June 30, 1994 for a total of $296,000 ~n process~ng and
lnspectlon serVlces from DMC. Wlth the retrofit of an
addlClonal 8,000 tOllets, the Clty would be wlthln 2,500
recroflts of achlevlng lts Phase II goals.
DMC has provlded prccesSlng and lnspectlon serVlces to the
Clty :rom the lnceptlon of che Bay Saver Program. Durlng
t~lS perlod, the level of custorrer serVlce and admlnlscratlve
support provlded by DMC has slgnlflcantly contrlbuted to the
success of the program. Staff belleves that changlug
COGtractors at thlS Juncture In the program would be very
dlsrupclve a~d there~ore reco~~ends that a one year contract
be awarded to DMC under the terms descrlbed In thlS staff
repo~t.
BU8GET!?ISCA~ IMPACT
Approval of the staff recornITLendatlon wl1l result ln an
expendl=ure not to exceed $296,000 from the Envlronmental
Prcgra~s DlvlSlon Bay Saver accouLt number 31-110-662-00000-
4439-00000 Budgeted funds are currently avallable lD thlS
accc~n~ to cover the proposed contract amo~nt.
~ECQ~r1E~DATIONS
It lS reco~~ended that Counc~l author1ze the C1ty Manager to
negotlace and execute a contrac~ wlth DMC 1n an amount not to
exceed $296,000 fo~ serV1ces related to the Bay Saver
3
Retroflt Program for the perlod July 1, 1993 through June 30,
1994.
Prepared by:
Cralg Perklns, Envlronmental Programs Manager
Susan Munves, Conservatlon Coordlnator
4