SR-502-006-01 (6)
EPWM:CP:BJ:CII Rebate Program1.doc
City Council Meeting: January 25, 2005 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 for 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 ten-year contract with the Metropolitan Water District of
Southern California (MWD) for the Commercial, Industrial and Institutional (CII)
Regional Rebate Program (Program) from January 1, 2005, through December
31, 2015. This Program provides rebates to Santa Monica businesses that install
specified water efficiency devices.
BACKGROUND
In 1994, and again in 2002, the City formalized its commitment to the concept
and practice of sustainability by adopting and implementing the Sustainable City
Plan (SCP). The SCP establishes a broad range 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 includes a goal to
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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.
MWD has declared a local drought condition and communities in Southern
California are increasingly turning to water conservation programs.
The City adopted stringent water conservation ordinances, codes and programs
beginning in 1988 to encourage the installation of water efficient devices. These
efforts have 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 (Program).
In recent years, the Program has awarded rebates to commercial water
customers in Santa Monica. As a result, 971 water-efficient devices have been
installed, which will save over 1,010 acre-feet (AF) of water over the lifetime of
their service (5 to 25 years). In the past, the City has augmented the MWD
rebates to establish the most attractive rebate offers to Santa Monica CII water
customers. The City?s contributions have varied from $30 to $250 per rebate,
depending upon the water device. The MWD contribution varies from $50 to
$2,000. Over a ten-year period (average estimated life of new water devices),
the value of the avoided water usage of 400 acre-feet is $172,400, based on
current water costs.
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Table 1 lists the water-efficient devices eligible for rebates in the contract period
which expired at the end of 2004, their corresponding rebate amounts and
lifetime water savings.
Table 1. List of Water Saving Devices and Rebate Amounts.
Lifetime
Water
Santa Total Savings
Monica MWD Rebate (Acre-
Contribution
Device Contribution Amount Feet*)
Ultra-Low Flow (ULF)
Flushometer Toilet $30 $60 $90 1.5
ULF Toilet $30 $60 $90 1.5
Dual Flush Toilet $70 $80 $150 1.2
$30 $60 $90
ULF Urinal 1.5
Zero Water Consumption
$90 $60 $150
Urinal 3.4
High-Efficiency Commercial $250 $500
Clothes Washer $250 ($100**) ($350) 1.4
Cooling Tower Conductivity
Controller $0 $500 $500 22
Pre-rinse self-closing Spray-
Head $0 $50 $50 .66
Hospital X-Ray Film
Processor Recirculating
System
$0 $2000 $2000 16
*
1 acre-foot (AF) equals 325,900 gallons
** New contract rebate is $100; previous contract rebate through 2004 was $250. This is the
only change in rebate amounts for the new contract.
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DISCUSSION
The rebate program has been successful and cost effective, and staff
recommends its continuation with the City contribution not to exceed a total of
$40,000 per year at the rebate levels noted in Table 1. The Program would
continue to provide ratepayers with new and permanent means of reducing their
utility costs, and to reduce the City?s total water usage toward the year 2010 20%
goal.
BUDGET/FINANCIAL IMPACT
Funds in the amount of $40,000 have been earmarked for this program and are
available in account number 25671.522140. Funding for future years would be
contingent upon City Council?s approval of the budget.
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) for the continuation of the Commercial, Industrial and
Institutional (CII) Regional Rebate Program from January 1, 2005 through
December 31, 2015.
Prepared by: Craig Perkins, Director, Environmental and Public Work Management
Brian Johnson, Manager, Environmental Programs Division
Gil Borboa, Manager, Water Resources Division
Neal Shapiro, Senior Administrative Analyst
Kim O?Cain, Water Resources Specialist
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