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SR 09-13-2016 3C Ci ty Council Report City Council Meeting : September 13, 2016 Agenda Item: 3.C 1 of 6 To: Mayor and City Council From: Dean Kubani, Sustainability Manager , Office of Sustainability & the Environment Subject: Memorandum of Understanding (MOU) with Santa Monica -Malibu Unified School District to Fund Water Use Audits and Infrastructure Retro fits Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a Memorandum of Understanding (MOU) between the City and the Santa Monica -Malibu Unified School District (SMMUSD) to fund water use audits and retrofits in an amount not to exceed $300,000 for on e year, with two additional one -year ren ewal option(s) totaling $549,000, on the same terms and conditions , for a total amount not to exceed $849,000 over a three -year period, with future year funding contingent on Council budget approval ; and 2. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section . Executive Summary This report requests Council authorize the City Manager to negotiate and execute a Memorandum of Understa nding (MOU) between the City and the Santa Monica -Malibu Unified School District (SMMUSD) to fund water use audits and retrofits in an amount not to exceed $300,000 for one year. This is one of the key strategies to conserve water outlined in the Sustaina ble Water Master Plan and part of the City’s drought response to reach and maintain a 20% water use reduction citywide. Only five inches of rain fell in the Santa Monica area during the 2015 -2016 rainy season, which was significantly below the 14 inch av erage for the region and the 30 inches of rain that was anticipated due to El Niño conditions. Drought conditions continue in Santa Monica even though the Governor ended the mandatory water conservation reductions in May 2016. As of July 2016 , citywide wat er use has been reduced 19.6% compared to 2013 , however water use has been increasing in all sectors since the start of the year . Therefore, i t is prudent to install permanent water savings infrastructure such as toilets, urinals, and irrigation equipment at SMMUSD schools and administrative offices within the City of Santa Monica . The total water savings potential at SMMUSD facilities will not be known until the audits are completed, but based on audits of similar facilities they are expected to reduce w ater use by 20% or more and result in significant ongoing cost savings. 2 of 6 Background On January 25, 2011, City Council directed staff to develop a Sustainable Water Master Plan (SWMP) that would include a roadmap to water self -sufficiency, including a 20% reduction in water use citywide. Kennedy/Jenks Consultants (KJC) was selected to develop the plan. Water use trends, high water users, and potential water savings measures were identified and analyzed using the Alliance for Water Efficiency’s Conservation Tool. Top water users including the City of Santa Monica, SMMUSD, large medical offices, laundromats, and landscapes, were identified. Specific water conservation strategies were recommended including costs and projected water savings. The final plan, whic h was adopted by Council on October 28, 2014 includes the expansion of water conservation programs and rebates, as well as the installation of additional groundwater wells, greywater systems and rainwater harvesting systems to increase local water supplies . On August 12, 2014 Council adopted a resolution declaring a Stage 2 Water Supply Shortage which changed the drought response from a voluntary 20% reduction in water use to a mandatory 20% reduction. Council also directed staff to return with a detaile d Stage 2 Water Supply Shortage implementation plan, including: proposed amendments to the Water Conservation Ordinance (SMMC 7.16) and the Water Shortage Response Plan (WSRP ), a financial impact analysis to address revenue reductions, additional staffing, program implementation costs, and an implementation timeline. On April 1, 2015 Governor Brown issued an Executive Order to direct the State Water Resources Control Board (SWRCB) to implement restrictions for a statewide cutback in potable urban water use of 25% through 2016. The SWRCB was directed to establish a framework of reduction levels for individual water supplie r s. On May 18, 2016 the SWRCB extended the Drought Emergency Water Conservation regulations through January 2017 and allowed water agenci es to define a customized water conservation standard based on their specific circumstances and report monthly , 3 of 6 thus replacing the percentage reduction -based water conservation standard established by the State in January 2015. Discussion The City’s drou ght response policies and programs build upon the programs and projects outlined in the SWMP. These coordinated efforts are achieving water use reductions while creating a sustainable water portfolio. As of Ju ly 201 6 citywide water use has been reduced 19.6 % compared to 2013 water usage. Local g roundwater wells are now providing nearly 75% of Santa Monica’s total water demand, reducing the need for imported water . During FY 2015 -16 the City was able to meet all water needs using local supplies for a period of 64 days , due in a large part to conservation efforts of residents and businesses . The City’s groundwater is recharged by rain. Only five inches of rain fell in the Santa Monica area during the 2015 -2016 rainy season, which was significantly below the 1 4 inch average for the region and the 30 inches of rain that was anticipated due to El Niño conditions. Even though the state lessened its drought response requirements, Santa Monica continues to take a long -range water management approach to ensure a resi lient and healthy water supply portfolio amid the uncertainty of climate change, water supply availability, and water demands. The suite of water conservation programs adopted by Council as part of the SWMP includes the completion of indoor and outdoor w ater audits and retrofits at SMMUSD schools and facilities in order to cut water use by at least 20% from 2013 levels. Unlike the City, SMMUSD does not have a revenue fund that is restricted to the installation of water conserving devices. The estimated co sts to audit the indoor plumbing fixtures and landscaping as well as potential retrofits were based on comparisons to City facilities and landscapes. The analysis included in the SWMP was based on SMMUSD saving at minimum approximately two million gallons of water each year. Staff is requesting that Council negotiate an MOU with the District and authorize $300,000 for FY 2016 -17 to fund the in itial water audits and retrofit phase of the project with two additional one year renewal options to complete the prioritized retrofit recommendations totaling $549,000 in an amount not exceed to $849,000. 4 of 6 This MOU would provide funding to SMMUSD to hire a consultant to perform both indoor and outdoor audits; provide a detailed report including specific recommendati ons and return on investment analysis; a timeline for installation; and priority retrofits. Staff estimates that audits may cost about $200,000. Retrofits of leaks, irrigation runoff, and water -wasting plumbing fixtures may cost at minimum $100,000. Base d on the terms of the MOU, SMMUSD would implement their bid process to select a vendor for the audits. SMMUSD would request funding from the City for these audits prior to commencement. Following review and approval by City staff , the City would provide fu nding. Once the audits are completed SMMUSD would provide the audit reports to the City with priority projects identified. Following review and approval by City staff , the City would provide funding for selected projects prior to commencement. Milestones a nd water -savings would be tracked. If projects fail to meet the agreed upon terms, SMMUSD would be required to reimburse the City An indoor water audit includes inspecting the make, model, flush volume and performance of each fixture such as toilets, urina ls, showers, faucets, cooling towers, washers, and pre -rinse spray valves. Mapping each fixture; analyzing historic water use; inspecting the water meter s ; and checking for leaks. Specific recommendations for retrofits or repairs as well as the retrofit co sts and calculation of return on investment are included in a detailed report. Each audit can take up to eight hours depending on the size of the facility. An outdoor water audit includes an irrigation catch -can test to determine the location, efficiency, alignmen t, spray patterns, and performance of each spray head. It also includes an analysis of the irrigation controllers , watering schedules and electrical connection s . In addition, the audit s typically include an analysis of plant material s and recommen dations for retrofitting to climate -appropriate plants. Specific recommendations for retrofits or repairs and a calculation of retrofit costs and return on investment are included in a detailed report. These audits can take several days for each campus and cannot be performed during school hours. 5 of 6 Staff recommends that these funds be provided to allow SMMUSD to hire a consultant to complete the audits due to their complexity and the large number of facilities owned and maintained by SMMUSD. City staff has begun auditing some SMMUSD facilities as part of its citywide water conservation efforts and , t o date, seven indoor water audits have been completed. These audits recommend the replacement of water -wasting fixtures such as showers, faucets, and urinals. H owever, staff’s workload is full and it has been difficult to allocate 6 to 8 hours at a time to complete each indoor water audit. A consultant would be able to systematically and efficiently complete water audits throughout the district in a timely manner which will allow for earlier completion of retrofits and greater ongoing water savings. Staff will continue to seek additional resources to offset the costs for audits and retrofits for SMMUSD. The funds provided to SMMUSD as part of this MOU would pay f or audits and retrofits for facilities located within the City of Santa Monica. The West Basin Municipal Water District provides water to SMMUSD schools in the City of Malibu and has hired a vendor to provide free indoor and outdoor water audits and repor ts for SMMUSD for those facilities . Financial Impacts and Budget Actions Execution of a Memorandum of Understanding with the Santa Monica Malibu Unified School District requires a FY 2016 -17 budget appropriation of $300,000 to account 25671.577830. Future year funding is contingent on Council approval . Prepared By: Kimberly O'Cain, Senior Sustainability Analyst Approved Forwarded to Council 6 of 6 Attachments: A. August 12, 2014 Stage 2 Water Supply Shortage B. October 28, 2014 Sustainable Water Master Plan Reference:    Contract  No. 10359   (CCS)