SR-6-G (117)
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EP~~:EPD:CP:SM:DMC Santa Monica, Callfornla JUt 2 5 f995
Cauncll Meetlng: July 25, 1995
TO: Mayor and C~ty Counell
FROM: Clty Staff
SUBJECT: Recommendatlon to Authorlze the Clty Manager to
Negotlate and Execute a Contract wlth Honeywell DMC
(DMC) in an Amount Not to Exceed $160,000 for
Serv~ces Related to the Bay Saver Retroflt Program
HITRODUCTION
Thls report recommends that Clty Counell authorlze the Clty
Manager to negot~ate and execute a contract w~th Honeywell
DIv1C (DMC) for admlnlstratlon and lnspectlon serVlces related
to the Bay Saver Retroflt program for the perlod August 1,
1995 to June 30, 1996.
DISCUSSION
Phase II of the Bay Saver Retroflt Program, adopted In Aprll
1992, estab11shed a goal to retrof~t a second 25 percent of
the resldentlal sector and an lDltlal 25 percent of the
commerclal sector wlth ultra low flush toilets and low flow
showerheads. Today, approxlmately 1800 resldentlal tOllets
and 2400 commerclal tOllets rernalll to be retrofltted. It lS
antlclpated that wlth the conclusion of the DMC contract, all
of the resldentlal sector and approxlmately three-quarters of
the commerclal sector goals wlll have been achleved. When
the Clty concludes ltS contract wlth DMC at the end of June
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JUL 2 5 1995
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1996, the Bay Saver Retroflt Program (Phases 1 and 2) toY'lll
have successfully achleved lts goal of permanently reduclng
long-ter.m water usage and wastewater flows ln the Clty by
approxlmately 1.9 IDlll10n gallons per day, a reduct10n of 15
percent 1n total dally water demand and 19 percent 1n average
total dally wastewater flows. ThlS represents saVlngs to the
C1ty, by the year 2000, of approxiwately $9.5 ffillllon 1n
avo1ded costs for the purchase of addltlonal wastewater
treatment capaclty at the Hyperlon Treatment Plant ln
addltion to future lncreases In the cost of lmported water
from the Metropolitan Water Dlstrlct of Southern Callfornla.
To cost-effectively conclude the program, staff wlll make the
followlng changes to the program. Effectlve July 1, 1996,
the res1dentlal portlon of the Bay Saver Program wlll end.
The C1ty w~ll no longer offer $75 rebates or a $35 dlrect
lnstallatlon option to res1dents. The Bay Saver Fee, charged
only to resldentlal utlllty customers who have not
part1c1pated ln the program, w1ll also end. Env1ronrnental
Programs D1V1Slon staff wlll contlnue to offer the $75 rebate
or the $35 dlrect lnstallatlon optlon solely to commerClal
ut1lity customers untll the 25 percent Phase II commerClal
goal 15 also achLeved.
The terms for thlS proposed contract wlth DMC, WhlCh was
purchased by Honeywell 1n 1995, wlll remaln the same as last
year's contract. Payments from the Clty wlll be based on a
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per retrofit rate of $37 for admlnlstrative and rebate
processing serVlces. The Clty wlll not be charged a flxed
monthly management fee. Under the terms of the contract, DMC
wl11 asslst In provldlng marketlng serVlces to stlmulate
partlcipation In the Bay Saver Program. Over 3,000 tOllets
were lnsta11ed between July 1, 1994 and
July 1, 1995. It 15 antlclpated that a max1mum of 4,184
commerclal and resldentlal tOllets wlll be retrof1tted durlng
the contract perlod from August 1, 1995 to June 30, 1996 for
a total of $154,808 1n process1ng and lnspectlon serV1ces
from DMC.
DMC has prov1ded process1ng and inspectlon serV1ces to the
Clty from the lnceptlon of the Bay Saver Program. Durlng
th~s perlod, the level of customer serV1ce and adm1n~strat~ve
support provlded by DMC has slgnlflcantly contr1buted to the
success of the program. Staff bel1eves that chang~ng
contractors at thlS Juncture In the program would be very
d1srupt1ve and therefore recommends that a one year contract
be awarded to DMC under the terms descr~bed in thlS staff
report.
BUDGET/FISCAL IMPACT
Approval of the staff recommendatlon will result ln an
expendlture not to exceed $160,000 from the Envlronmental
Programs D1vls1on Bay Saver account number 31-500-662-00000-
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4439-00000. Over $767,000 lS currently avallable ln thlS
account to cover the proposed contract amount.
RECOMMENDATIONS
It lS recommended that Counc1l authorlze the C1ty Manager to
negotlate and execute a contract wlth DMC ln an amount not to
exceed $160,000 for serV1ces related to the Bay Saver
Retrof1t Program for the per10d August 1, 1995 through June
30, 1996.
Prepared by: Cra1g Perklns, Dlrector of EnVlrOTImental and
Publ~c works Management
Susan Munves, Conservatlon Coord1nator
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