SR-09-08-2015-3L
City Council
Report
City Council Regular Meeting: September 8, 2015
Agenda Item: 3.L
1 of 6
To: Mayor and City Council
From: Dean Kubani, Sustainability Manager, Office of Sustainability and the
Environment
Subject: First Modification to Multi-Family Toilet Direct Install Contract
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a first modification to
contractual services agreement #4077 in the amount of $1,199,000 with
Southwest Environmental, Inc., a California-based company, for continued
marketing and retrofitting of water-efficient toilets in high-density, multi-family
buildings. This will result in a two year amended contract with a new total amount
not to exceed $1,320,000 with future year funding contingent on Council budget
approval.
2. Authorize budget changes as outlined in the Financial Impacts & Budget Actions
section of this report.
Executive Summary
The Multi-Family Toilet Direct Install Program (Program) is a key water conservation
component of both the Sustainable Water Master Plan (SWMP) and the City’s
comprehensive drought response efforts. The Program facilitates the retrofitting of
inefficient water-wasting devices with water efficient, high-efficiency fixtures in multi-
family buildings.
On April 14, 2015, the City awarded Southwest Environmental Inc. a Contractual
Services Agreement (CSA) under the authority of the City Manager to perform
installation services for Phase 1 of the Program. Phase 1 was completed in June 2015
resulting in the installation of 522 high-efficiency toilets (HET) and other high-efficiency
fixtures with an estimated water savings of 19,077 gallons per day.
This first modification to the contract with Southwest Environmental, Inc., for a total
amount not to exceed $1,320,000 will provide for the continued Phase 2 installation of
an additional 3,790 HET toilets in Community Corporation of Santa Monica (CCSM) and
other high water using multi-family properties. Water savings estimate for Phase 2
retrofit is 51,945 gallons per day. Total water savings resulting from both Phase 1 and
Phase 2 retrofits are estimated at 71,022 gallons per day, or 26 million gallons per year
(80 acre-feet).
2 of 6
The total anticipated Metropolitan Water District of Southern California (MWD) funding
credit is $113,690 for Phase 1 and Phase 2 HET toilet installations.
Background
The Multi-Family Toilet Direct Install Program is an effective water conservation
program that supports and helps meet two of the City’s sustainability efforts and goals:
1. Sustainable Water Master Plan - Water self-sufficiency by 2020
2. Drought Response - 20% reduction in water use by February 2016
The Phase 1 contract budget enabled Southwest Environmental to install 522 HET
toilets, 436 low-flow showerheads and 758 low-flow faucet aerators in 31 CCSM
properties spanning a total of 392 high-density, multi-family units housing low-income
residents. Fixtures were removed and recycled and the Phase 1 work was completed in
June 2015. Although water meter usage data is not yet available, CCSM estimates a
20-30% water reduction in the buildings retrofitted with the new low-flow devices.
Conservation tool calculations estimate Phase 1 retrofit savings of 19,077 gallons per
day.
Sustainable Water Master Plan
In 2011, as a part of its Sustainable Water Master Plan (SWMP), Santa Monica
committed to achieving 100% water self-sufficiency by 2020. Achieving 100% water
self-sufficiency means closing the gap that exists between total water demand and total
water available locally. Strategies to close the gap include water conservation, such as
the Multi-Family Toilet Direct Install Program, as well as new supply and water
treatment options and additional alternative water sources. On October 28, 2014,
Council approved the conservation programs listed in the SWMP, including the Multi-
Family Toilet Direct Install Program with an estimated cost of $1,573,100 (see
Attachment A, Table 1).
Drought Response
On August 12, 2014, the City declared a Stage 2 Water Supply Shortage requiring
3 of 6
mandatory water conservation to achieve a 20% reduction in water use compared to
2013 (see Attachment B). On January 13, 2015, the City’s Water Shortage Response
Plan was updated and accelerated funding for the SWMP’s Multi-Family Toilet Direct
Install Program was approved at that same Council meeting (see Attachment C). On
April 1, 2015, California Governor Brown issued an Executive Order mandating, for the
first time ever, a statewide 25% reduction in urban potable water use. Santa Monica
was assigned a 20% reduction level from 2013 usage by the State Water Resources
Control Board to help achieve the aggregate statewide cutback. To meet both the City’s
Stage 2 Water Supply Shortage reduction and the State’s mandated reduction, Water
Use Allowances went into effect June 2015 requiring City water customers to reduce
water consumption 20% from 2013 levels. In addition, Council approved accelerated
funding of $1,374,000 for the SWMP’s Multi-Family Toilet Direct Install Program in the
amounts of $750,000 for FY 2014-15 and $624,000 for FY 2015-16.
Discussion
One of the most effective water conservation strategies is to reduce the demand and
usage of potable water in buildings. In particular, 43% of Santa Monica’s water use is by
multi-family buildings (6,307 accounts covering 51,000 individual housing units). Of this
usage, toilets, faucets and showerheads together account for the majority. The Multi-
Family Direct Install Program directly addresses the City’s water conservation goals by
providing for the installation of high-efficiency, water-saving fixtures in high-density
multi-family buildings.
The Program - Phase 1
The portfolio of targeted sites for Phase 1 of the Program were CCSM properties – high-
density, multi-family buildings housing low-income residents. The contract commenced
on June 1, 2015, and by June 30, 2015, Southwest Environm ental, Inc. completed
Phase 1, using $172,533.25 of the $175,000 Phase 1 budget. New water efficient
fixtures, including 522 HET toilets, were installed in 392 units across 31 buildings in the
City. Funding for Phase 1 was obtained from account 25671.577836 (Drought
Response Account). Completion of Phase 1 by the end of June 2015 was required in
order to receive a water conservation credit of $75,960 from the Metropolitan Water
4 of 6
District MWD for FY14-2015 installations. Please see Attachment D for a video about
Phase 1 of the Multi-Family Toilet Direct Install Program.
Southwest Environmental, Inc., performed and completed all contractual requirements
for Phase 1 of the Program in a manner that met expectations. The contract permitted
an extension with the same vendor to install additional toilets. Therefore, staff is
recommending this vendor continue the work for Phase 2 of the Program.
MWD approved a funding credit up to $435,000 for toilet installations completed in FY
2014-15. The City was able to install 522 toilets during the month-long duration of
Phase 1, resulting in a funding credit in the amount of $75,690. The City anticipates
receiving an MWD water invoice credit of $38,000 for Phase 2 installations completed in
FY 2015-16. The total anticipated MWD funding credit is $113,690. Credits appear on
invoices for water the City purchases from MWD.
The Program - Phase 2
The first modification to the contract with Southwest Environmental, Inc., for Phase 2
HET toilet installations in the amount not to exceed $1,320,000 would provide for the
continued Phase 2 installation of an additional 3,790 HET toilets (total cost for each
installation is $317). Combined with Phase 1 installations, a total of 4,312 toilet
installations would be achieved.
Implementing Phase 2 of the Program will result in water savings that can contribute to
the City’s ongoing drought response and can be realized within the reporting timeframe
(June 1, 2015 - February 29, 2016) for the Statewide mandatory 20% water usage
cutback and for the City’s 20% reduction deadline of December 31, 2016.
The targeted buildings for the Phase 2 and additional funding are the same as Phase 1
– high density, multi-family buildings housing low-income residents. CCSM has
approximately 50 buildings and 1,100 units that are candidates for retrofitting. Additional
candidate installation sites will be secured by the vendor’s marketing and outreach
activities which are a component of the contract. Candidate sites must reviewed and
5 of 6
approved by the City before installations may commence.
Vendor/Consultant Selection
On March 18, 2015, the City published a Request for Proposals (RFP #28) to provide
contractual installation services for the Multi-Family Toilet Direct Install Program. The
RFP was posted on the City’s on-line bidding site, and notices were advertised in the
Santa Monica Daily Press in accordance with City Charter and Municipal Code
provisions. Twenty-seven vendors were notified, and five hardcopy proposals were
received and publicly opened. Proposals were evaluated based on the criteria in SMMC
2.24.072, including price, previous experience, capacity and skill, ability to deliver and
provide future maintenance or service, and compliance with City scope of work. Based
on these criteria, Southwest Environmental Inc., the lowest response, was selected as
the best bidder for the installation of high-efficiency, water-saving toilets, showerheads
and faucet aerators in multi-family buildings in accordance with City scope of work for
an amount not to exceed $121,000.
Financial Impacts and Budget Actions
On January 13, 2015 (see Attachment C), in response to the severe drought, Council
approved accelerated FY 2014-15 and FY 2015-16 funding for the Multi-Family Toilet
Direct Install program in the amount of $1,374,000. Funding sources to support the
program include MWD funding, Baysaver fees and Water Funds.
The contractual services agreement modification to be awarded to Southwest
Environmental, Inc. is $1,199,000, for an amended contract total not to exceed
$1,320,000. The contract will be charged to account 25671.555911 ($341,696.55) and
25671.577836 ($857,303.45).
Award of the agreement requires the following budget actions:
1) Release of fund balance from reserve account 25.335026 (Baysaver) of
$341,696.55; and
2) Appropriation of $341,696.55 to account 25671.555911 (Baysaver - Indoor
Plumbing).
6 of 6
The City received a funding credit from MWD in the amount of $75,690 for Phase 1
toilet installations and will receive a funding credit up to $38,000 for FY 2015-16 Phase
2 installations. The total anticipated MWD funding credit is $113,690. These credits
appear on invoices for water the City purchases from MWD.
Prepared By: Thomas Fleming, Sustainability Analyst
Approved
Forwarded to Council
Attachments:
A. October 28, 2014 Staff Report (web link)
B. August 12, 2014 Staff Report (web link)
C. January 13, 2015 Staff Report (web link)
D. Video of Multi-Family Toilet Direct Install Program, Phase 1 (web link)
Reference:
Contract No. 10187
(CCS)