SR-6H (16)
EPWM:SM:cJmccont2 Santa Mon.ca, ~~.a
Councll Meetlng: September 13, 1994 ~',
- ;071
SEP 1 3 199't
TO: Mayor and Clty Councll
FROM: Clty Staff
SUBJECT: Recornmendatlon to Authorlze the Clty Manager to
Negotlate and Execute a Contract wlth The Demand
Management Company (DMC) ln an Amount Not to Exceed
$203,500 for SerVlces Related to the Bay Saver
Retroflt Program
INTRODUCTION
This report recommends that the Clty Councll authorlze the
Clty Manager to negotlate and execute a contract wlth the
Demand Management Company (DMC) for admlnlstratlve and
lnspectlon serVlces related to the Bay Saver Retroflt Program
for the perlod August 1, 1994 to July 31, 1995.
DISCUSSION
In Aprll 1992, the Clty Council approved Phase II of the Bay
Saver Retroflt Program The goal of Phase II lS to retroflt
an addltlonal 25 percent of resldential households (19,200
tOllets) and an lnltlal 25 percent (4,000) of cormnerclal
tOllets. Slnce the lnception of the Bay Saver Retroflt
Program In December 1989, the Clty has retrofitted a total of
33,680 resldentlal toilets and 1,480 cornmerclal tOllets,
completlng 87 percent of our resldentlal and 37 percent of
our commerclal retroflt goals. Achlevement of Phase II goals
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wlll reqUlre retroflttlng an addltlonal 4720 resldentlal
tOllets and 2520 commerclal tOllets.
Funding for the program lS currently provlded through the
Metropolltan Water Dlstrlct Conservatlon Credlts Program, the
Bay Saver Incentlve Fee, and Water Demand Mitigat10n fees.
Rebate amounts wlll remain at $75 for each tOllet and
showerhead retroflt, and dlrect installation customer co-
payment wlll remaln at $35 per tOllet. To encourage
partlclpatlon from the shrlnklng potentlal retroflt base, the
Clty has entered lnto lts flrst pllot nO-lnterest loan
agreement wlth Chrlstlan Towers, a low-lncome senlor houslng
proJect located at 1233 Slxth Street. Under the terms of
thlS agreement, the Clty wlll loan Chrlstlan Towers $5915 for
the retroflt of 169 ultra low flush tOllets and low flow
showerheads. Chrlstlan Towers wlll repay the loan In SlX bl-
monthly lDstallments appearlng on thelr utility bill. Durlng
the one year payback perlod, Chrlstlan Towers should reduce
thelr utlllty blll by an estlmated $500 per bllllng perlod
based OD an estlmated 30 percent reductloD ln water and
wastewater use. After repayment of the loan, average savlDgs
wlll lncrease to approxlmately $1500 per bllllDg perlod.
ThlS year's contract wlth DMC sets forth the same terms as
the prlor year's agreement. Payments from the Clty will be
based on a per retrofit rate of $37. DMC wlll provlde
marketing serVlces to stlffiulate particlpation lD the Bay
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Saver Program. It lS antlclpated that at our current rate of
partlclpatlon, up to 5500 commerclal and resldentlal tOllets
wlll be retrofltted durlng the contract perlod from August 1,
1994 to July 31, 1995 for a total of $203,500 ln processlng
and lnspectlon serVlces from DMC. Wlth the retroflt of an
addltlonal 5500 tOllets, the Clty would be 1740 retrofits
short of achievlng ltS Phase II goals.
DMC has provlded processlng and lnspectlon serVlces to the
City from the lnceptlon of the Bay Saver Program. DMC was
selected after successfully competlng ln two separate Request
for Proposal processes over the past five years. Durlng thlS
period, the level of customer serVlce and admlnlstratlve
support provlded by DMC has Slgnlflcantly contrlbuted to the
success of the program. The overall retroflt goal of the
program has also nearly been achleved. For these reasons,
staff bell eves that changlng contractors at thlS Juncture ln
the program would be very dlsruptlve and not cost-effectlve,
and therefore recommends that a one year contract be awarded
to DMC under the terms descrlbed In thlS staff report.
Upon completlon of Phase II, the Clty wlll achleve a
permanent reductlon ln water usage and wastewater flows of
1.9 mill~on gallons per day WhlCh represents a 15 percent
reductlon In total dally water demand and a 19 percent
reductlon In average total dally wastewater flows. The
reductions ln water usage wlll aSslst the Clty ln reduclng
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ltS future reI lance on lmported water supplles and enhance
ltS ablllty to cope wlth future water shortages.
BUDGET/FISCAL IMPACT
Approval of the staff recomrnendatlon wlll result ln an
expendlture not to exceed $203,500 from the Environmental
Programs DlvlSlon Bay Saver account number 31-500-662-00000-
4439-00000, Budgeted funds are currently avallable ln thlS
account to cover the proposed contract amount.
RECOMMENDATIONS
It lS recommended that the Clty Councll authorlze the Clty
Manager to negotlate and execute a contract wlth DMC lD an
amount not to exceed $203,500 for servlces related to the Bay
Saver Retroflt Program for the perlod August I, 1994 through
July 31, 1995,
Prepared by: Cralg PerklDs, Dlrector of Envlrorrmental and
PubllC Works Management
Susan Munves, Conservatlon Coordinator
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