SR-502-006-01 (5)
EPWM:CP:BJ:CII Rebate Program.doc
City Council Meeting: September 28, 2004 Santa Monica, California
TO: Mayor and Councilmembers
FROM: City Staff
SUBJECT: Authorize the City Manager to Negotiate and Execute A Contract with
the Metropolitan Water District of Southern California to Extend the
Commercial, Industrial and Institutional Regional Rebate Program for
Water Efficient Devices
INTRODUCTION
This report recommends that City Council authorize the City Manager to negotiate and
execute a contract with the Metropolitan Water District of Southern California (MWD)
to extend the Commercial, Industrial and Institutional (CII) Regional Rebate program
from July 1, 2004 through December 31, 2004. The proposed program is an integral
component of the Santa Monica Sustainable City Plan, which focuses on water
conservation.
BACKGROUND
The City of Santa Monica has identified sustainability as a principle community priority.
In 1994, and again in 2002, the City formalized its commitment to sustainability by
adopting and implementing the Sustainable City Plan (SCP), which establishes a
broad spectrum of goals, targets and indicators for City operations and the community
at large. These goals include the reduction of resource consumption, the reduction of
waste and pollution, the safeguarding of environmental resources and public health,
and maintaining a healthy and diverse community and economy. The SCP has a goal
1
to reduce water consumption in the community by 20% from the 2000 usage volume
of 13.6 million gallons per day (MGD) to 10.88 MGD by the year 2010. This staff
report addresses opportunities focusing on the reduction of water consumption in the
business community.
DISCUSSION
In response to periodic and severe droughts, the City adopted stringent water
conservation ordinances, codes and programs beginning in 1988 to encourage the
installation of water efficient devices. These efforts included the Retrofit Upon Sale
and No-Water-Waste Ordinances, the Bay Saver Program, Plumbing Code
requirements for new construction, and participation in the MWD- sponsored CII
Rebate Program.
It is important to note that MWD has recently declared a local drought condition, which
exacerbates conditions imposed by the regional drought currently underway.
Communities in southern California are increasingly turning to water conservation
programs to reduce the impact during these critical times.
The CII Rebate Program (Program) awards rebates to commercial water customers
that have collectively installed 971 water-efficient devices resulting in water savings of
1010 acre-feet (AF) over the lifetime of the devices (5 to 25 years). The rebates
include local agency (i.e. City of Santa Monica) contributions in conjunction with the
MWD contribution to establish the most attractive rebate offers to Santa Monica CII
2
water customers. The City?s contribution varies from $30 to $250, depending upon the
water device. The MWD contribution varies from $50 to $500. A table of contributions
is included in the MWD-City agreement. Over a ten-year period (average estimated
life of new water devices), the value of the avoided water usage of 400 acre-feet, or
savings is $172,400, based on current water costs.
This report requests the execution of an extension to the agreement with MWD so that
they may continue to contribute funding to the City?s CII Program and its water
conservation strategies. The Program will provide ratepayers with new and
permanent means of reducing their utility costs and reduce the City?s total water usage
toward the 20% goal. For example, a zero-water consumption urinal rebate is $150
($90 from the City; $60 from MWD) and can save approximately 730,000 gallons of
water over its twenty-year lifetime, while a cooling tower conductivity controller rebate
is $500 (all MWD contribution) and can save approximately 10,950,000 gallons of
water over its fifteen-year lifetime.
The amount contributed by the City through December 31, 2004 is for half a fiscal
year. (The City has averaged and will continue to average $40,000 per year for the
Program.) Staff will return to Council toward the end of this calendar year after MWD
completes its new contract with the CII Program administrator for the next five years.
At that time, additional funds will be allocated to complete this fiscal year and the
additional four years of the new MWD contract.
3
BUDGET/FINANCIAL IMPACT
The City?s share of the rebate program through December 31, 2004 is estimated to be
$20,000 and is available at account 31662.544390.
RECOMMENDATIONS
This report recommends that City Council authorize the City Manager to negotiate and
execute a contract with the Metropolitan Water District of Southern California (MWD)
to extend the Commercial, Industrial and Institutional (CII) Regional Rebate Program
from July 1, 2004 through December 31, 2004.
Prepared by: Craig Perkins, Director, Environmental and Public Work Management
Brian Johnson, Manager, Environmental Programs Division
Neal Shapiro, Senior Administrative Analyst
Kim O?Cain, Water Resources Specialist
4