SR-502-006-06
EPWM:CP:BJ:f/EPWM/ADMIN/Staffrpt/07-22-03/DWRProp13StaffReport.doc
Council Meeting: July 22, 2003 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Contract with the California Department of Water Resources for the
Proposition 13 Urban Water Conservation Grant for Implementation of a
Comprehensive Medical Facility Turn-Key Program
Introduction
This report recommends that the City Council authorize the City Manager to negotiate
and execute a one-year grant contract with the California Department of Water
Resources (DWR) for the Comprehensive Medical Facility Turn-Key Program
(Program) Grant.
Background
Historically, Santa Monica?s water conservation programs have been more successful
in the residential sector than the business sector. For example, since its inception in
1989, the City?s Bay Saver Program, which provides financial incentives to residents
and businesses to install water efficient devices including ultra-low flow toilets,
showerheads, and clothes washers, has experienced very successful participation from
residents, yet minimal acceptance by businesses. Of the 46,000 toilets installed
throughout the City as part of this program, less than 1% were installed in commercial
facilities.
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In 2002, the Environmental Programs Division began developing and implementing
new Bay Saver Programs as a result of the ?2002 Water Efficiency Strategic Plan.?
The Plan calls for a medical facility retrofit program that will assist the community in
achieving the City?s goal of reducing water consumption 20% by year 2010, which is a
savings of 2.6 million gallons per day. To implement this program, staff applied for a
state Proposition 13 Urban Water Conservation Grant.
Discussion
In May, the City of Santa Monica was awarded a $126,300 grant from DWR for its
Comprehensive Medical Facility Turn-Key Program. The Program will target medical
facilities including hospitals, board and care facilities, and medical office buildings.
Such institutions are consistently within the top 10 water users. In Santa Monica,
medical facilities account for 20% of the commercial water demand due to the water
usage required by x-ray processors and cooling towers.
With the grant-funded program, the City will engage a contractor who will purchase and
install products such as ultra-low flow toilets, zero consumption urinals, x-ray machine
re-circulators, faucet pre-rinse spray valves, and cooling tower conductivity controllers
at wholesale cost. This cost reduction increases the cost-effectiveness of the
installation. And with zero customer cost, the business will realize immediate utility
savings.
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The total water savings goal is anticipated to be 1,572 acre-feet (512,314,800 gallons)
over the lifetime of the various products or approximately 83 acre-feet per year
(27,049,700 gallons), which is about 74,000 gallons per day or 3% of the 20%
reduction goal.
Budget/Financial Impact
The total cost of the Project is $176,300. The City was awarded a $126,300 grant from
the DWR for this Program. The budget for this grant is not yet included in the FY2003-
04 budget; therefore, a revenue budget increase of $126,300 must be reflected at
account 31662.406750 and an expenditure appropriation of $126,300 must be added at
account 31662.555060.86267. The remaining $50,000 will come from in-kind staff
administration and engagement of a contractor to assist staff in implementing the
program. Funds for the contract are available in Professional Services line item
account 31662.555060.86267.
Staff anticipates that expenditures from the Water Division budget line item
25671.522140 (designated for potable water purchase) will be reduced by
approximately $38,180 for FY 2003-04 as a result of avoided water purchases due to
the reduction of water consumption through this program. The expenditure decrease is
offset by a reduction in revenues due to lower potable water sales as a result of
conservation reducing revenue account 25671.402310 by $38,180. A report on
program achievement will document such reductions.
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Recommendations
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a grant contract with the California Department of Water Resources (DWR) for
the Comprehensive Medical Facility Turn-Key Program (Program) Grant and implement
budget changes identified above.
Prepared by: Craig Perkins, Director, EPWM
Brian Johnson, Manager, Environmental Programs Division
Neal Shapiro, Senior Administrative Analyst -Water Resources
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