SR-6-E (104)
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GS:CP:SM:dmccont Santa Monica, California
council Meeting: September 24, 1991
To: Mayor and City Council
From: city staff
Subject: Request for Council Approval of a $250,000 Increase
to the Contract Between the city and DMC Services,
Inc. for Services Related to the BAYSAVER Fixture
Rebate Program
INTRODUCTION
This report requests that Council approve a $250,000 increase to
the contract between the city and DMC Services, Inc. to reflect
increased participation in the City's BAY SAVER Fixture Rebate
Program.
BACKGROUND
The BAYSAVER Fixture Rebate program was established by City council
in October, 1989, with partial funding support from the
Metropolitan Water District. The adopted goal of the program was
to retrofit 25 percent of all residential households in the city
(approximately 12,000). Actual rebate processing and inspection
services for the program were provided by DMC Services, Inc. under
contract with the City.
In December, 1990, the City renewed this arrangement and entered
into an additional one year agreement (contract no. 5411) with DMC
Services, Inc. to provide residential rebate inspection and
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processing services for the second year of the BAYSAVER Fixture
Rebate Program. Under the terms of this agreement, the city agreed
to pay DNC services, Inc. a set amount for each dwelling unit which
participated in the BAYSAVER Program. The current agreement is for
a total of $180,000 which represents estimated participation by
4,000 dwelling units, or a total of 6,000 bathroom retrofits,
during the one year contract period. Due to the continuing drought
and the enactment of emergency water conservation cutback
requirements, participation in the BAYSAVER Program has far
exceeded these contract estimates.
DISCUSSION
The retrofits which have been accomplished to date under the
BAYSA VER program represent a nearly 1.0 million gallon per day
decrease in the city's water consumption and wastewater generation.
This permanent conservation effort will result in significant long-
term savings to the City both for the avoided cost of imported
water and a reduction in our wastewater treatment capacity needs
at the Hyperion Treatment Plant.
Participation in the new Direct Install option, targeted to owners
of rent-controlled multi-family buildings and low-income owners of
single family houses, has also proven to be great. Between December
1, 1990 and August 31, 1991, DMC Services, Inc. had processed and
inspected approximately 10,200 dwelling units, representing a total
of 15,300 bathroom retrofits. During the remaining three months of
the contract, it is anticipated that an additional 4,000 dwelling
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units (6,000 bathroom retrofits) will be accomplished under the
auspices of the BAYSAVER Rebate and Direct Install programs.
The current contract with DMC Services, Inc. calls for the payment
of $25 for each dwelling unit that is processed and inspected in
addition to a monthly management fee of $5,493. Based on the actual
retrofits through August as well as the estimated additional
retrofits over the remaining three months of the contract the total
projected payment to DMC Services, Inc. for the one year agreement
comes to approximately $430,000. Since the original contract amount
was $180,000, the additional budget appropriation which is needed
to finish the one year agreement amounts to $250,000.
BUDGET/FISCAL IMPACT
Approval of the staff report recommendation will increase
Environmental Programs Division account number 31-110-662-00000-
4439-00000 "Other Costsll by $250,000, Wastewater Fund interfund
transfer account number 31-700-695-00000-5566-00000 by $ -125,000,
and Water Fund interfund transfer account number 25-700-695-00000-
5566-00000 by $125,000. These account changes reflect an
appropriation of one-half of the total amount ($125,000) from
Wastewater Fund reserves and one-half ($125,000) from the Water
Fund reserves. Both the Water and Wastewater funds have sufficient
available reserves to pay for this increased cost.
RECOMMENDATIONS
It is recommended that Council approve a $250,000 increase in the
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contract amount for DMC Services, Inc. for services related to the
BAY SAVER fixture rebate program through November 30, 1991, and
authorize the budget changes which are indicated in this report.
Prepared by: Stanley Scholl, Director of General Services
Craig Perkins, Environmental Services Manager
Susan Munves, Acting conservation Coordinator