SR-502-006-01 (3)
EPWM:adm/staffrpt/8-14-01XENERGYBay SaverRev01-03
Council Meeting: August 14, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute
a Contract With XENERGYfor Services Related to the Bay Saver Water
Conservation Program
INTRODUCTION
This report recommends that City Council authorize the City Manager to negotiate and
execute a contract with XENERGY in the amount of $71,184 per year for services
related to the Bay Saver Retrofit Program for the period July 1, 2001 to June 30, 2003.
BACKGROUND
On July 10, 2001, Council extended the Bay Saver Retrofit Program to June 2003. The
program began in 1989 and provides incentives to residents and businesses to install
ultra low-flow (ULF) water efficiency devices, including toilets, aerators and
showerheads. By replacing water-wasting plumbing fixtures with ULF toilets (1.6 gallon
per flush) and low-flow showerheads and aerators, residents help the City achieve its
Sustainable City Water Efficiency Goals as they reduce their water and wastewater
charges. Residential ratepayers also eliminate the monthly Bay Saver Fee when they
install water-saving devices. Through the Bay Saver Program, residents and
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businesses can opt to either install toilets themselves and receive a direct rebate of
$75 per toilet or have a city contractor install the toilet and pay $35 apiece.
To date, almost 47,000 ULF toilets have been installed in homes and businesses in the
city. Each ULF toilet is estimated to save an average of 35 gallons of water per day
when compared to a non-ULF toilet. When compared to City water use and wastewater
production without the Bay Saver Program, the City has achieved a permanent
reduction in water usage and wastewater generation of 1.6 million gallons per day
(MGD), representing a 13 percent reduction in Santa Monica?s total daily water demand
and an 18 percent reduction in average daily wastewater flows. These figures exclude
savings from the installation of low-flow aerators and showerheads, which are more
difficult to accurately quantify. The Bay Saver Program is funded through water
demand mitigation fees paid by new development and a $60 per toilet credit issued by
the MWD on the City?s potable water bill.
DISCUSSION
Staff has determined that professional service contracting is the most cost-effective
manner to administer the program due to the high number of transactions per year. As
such, the City has utilized the services of an outside contractor to assist in the
program?s administration and implementation since its inception. Following a recent
program evaluation, staff recommends that the City continue with this approach and
execute a new contract with a vendor to administer the Bay Saver Program through FY
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2001-03. The contractor will provide various services to support the program, including
customer service, data and financial management, and inspection services.
In June 2001, staff mailed Request for Qualifications to 40 vendors. Of the 40 vendors
with the type of services appropriate for this contract, only two responded. Both of the
respondents were deemed qualified, and staff forwarded a Request for Proposal to
both. Based on the staff?s evaluation of the two responses, staff selected XENERGY
as the most cost effective and best-qualified firm.
BUDGET/FISCAL IMPACT
Sufficient funds exist in the Environmental Programs Division line item account
31662.544390 in the amount of $71,184 per year to pay for the 2-year contract. It is
important to note that there will be a further reduction in water use due to the
installation of the additional approximately 3,000 toilets over two years. The program
should result in avoided purchases of 117 acre-feet (3,000 ULFTs at 35 gallons per day
or 105,000 gallons per day) of potable water from the MWD and wastewater treatment
charges paid to the City of Los Angeles (treatment of 105,000 gallons per day). These
savings are expected to begin accruing to the City at the beginning of FY 02-03, once
all ULF toilets are installed, which will be reflected in future years? budgets.
The MWD credit to the City?s MWD potable water bill over the 2-year period will be
$180,000 (3,000 toilet installations at $60 per toilet). The EPD submits to MWD on a
quarterly basis a report on ULF toilet installations, with the resultant credit showing up
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on the City?s next MWD potable water bill. The first such report will be submitted to
MWD during October 2001.
RECOMMENDATIONS
City staff recommends that the City Council authorize the City Manager to negotiate
and execute a contract with XENERGY for services related to the Bay Saver Program
for the period July 1, 2001 to June 30, 2003.
Prepared by: Craig Perkins, Director, Environmental & Public Works Management
Brian Johnson, Manager, Environmental Programs Division
Neal Shapiro, Senior Environmental Analyst, Water Resources Section
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