SR-502-006-01 (7)
EPWM:CP:BJ:NS:KO:BaysaverVendor.doc
Council Meeting: June 21, 2005 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Authorize the City Manager to Negotiate and Execute a Contract
with Kema, Inc., to Provide Administrative Management Services
for the Bay Saver Water Conservation Program
Introduction
This report recommends that City Council authorize the City Manager to
negotiate and execute a two-year contract with Kema, Inc., for the City?s water
conservation Bay Saver Program from July 1, 2005, through June 30, 2007, with
an option to renew for a third year. The contractor provides customer service,
data and financial management, and inspection services for the program.
Background
Since 1989, the City of Santa Monica has implemented numerous water
conservation programs. One of these, the Bay Saver Program, provides
incentives to residents and businesses to install ultra low-flow (ULF) water
efficiency devices through rebates or direct installations. A portion of the
incentives are provided by Metropolitan Water District of Southern California, with
the remainder budgeted from City funds. When combined with the Retrofit Upon
Sale ordinance, these efforts have been largely responsible for the City?s past
success in reducing water demand and wastewater generation, and contribute to
1
the achievement of the Resource Conservation goals of the Sustainable City
Plan.
To date, almost 47,000 ultra low flush toilets have been installed in homes and
businesses, and the City has achieved a permanent reduction in water usage
and wastewater generation of 1.6 million gallons per day, 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. It is estimated that approximately 90% of the
residential plumbing devices have now been retrofitted with water efficient
devices.
Discussion
The City?s Water Efficiency Strategic Plan 2002 recommended that the Bay
Saver Program eliminate some program elements and add new, more cost-
effective measures, including financial incentives for weather-based irrigation
controllers and high-efficiency clothes washers. This staff report addresses the
administrative services necessary to support these program elements.
The City has employed a contractor to assist in the program?s administration and
implementation since its inception. Following a recent program evaluation, staff
recommended that the City continue with this approach. Since this time, a
contractor has provided customer service, data and financial management, and
2
inspection services related to this program. The current contract expires June
30, 2005.
In March 2005, a request for proposals was distributed to five potential bidders
and three bids were received. Staff conducted a thorough review of each
proposal and based upon experience, qualifications, and responsiveness to the
bid request, recommends the selection of Kema, Inc. Kema, Inc., submitted the
least cost bid and has provided cost-effective program administration for the City
in the past. The cost for the two-year contract is not to exceed $100,000 for the
first year and $80,000 for the second year. These costs are for program
administration including inspection services. Rebates to program participants are
funded separately in the Environmental Programs Division operating budget.
Budget/Financial Impact
Funds for these services are not to exceed $100,000 for FY 2005-06 and
$80,000 for FY 2006-07 and 2007-08 (in the event the option to renew for a third
year is exercised). Funds have been requested in the proposed budget for FY
2005-06 and 2006-07 in account 31662.544390, and will be contingent on City
Council approval of these budgets.
Recommendations
This report recommends that City Council authorize the City Manager to
negotiate and execute a contract with Kema, Inc., for customer service, data and
financial management, and inspection services for the City?s Bay Saver Water
3
Conservation Program for FY 2005-06 and 2006-07 with an option to renew an
additional year at amounts stated above.
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
?Reference Contract No. 8486 (CCS)?
4