HomeMy WebLinkAboutMunicipal Water District of Orange County - MWDOC - 2011-07-05j Council/Agency Meeting Held:_
E
e Deferred/Continued to:
Pppr ed ❑ Conditionally Approved ❑ Denied i CI 's Sign ture
Council Meeting Date: July 5, 2011 Department ID Number: PW 11-034
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Travis K. Hopkins, PE, Director of Public Works
SUBJECT: Approve and authorize execution of an Agreement with the Municipal
Water District of Orange County (MWDOC) for participation in the
Weather Based Irrigation Timer (Smart Timer) Rebate Program
Statement of Issue: The Municipal Water District of Orange County (MWDOC) has
developed and arranged for funding through the Metropolitan Water District of Southern
California (MWD) for a regional program to provide rebates to single-family residential and
commercial water customers for the purchase and installation of weather -based irrigation
timers ("Smart Timers"). This agreement formalizes the City's ongoing participation in the
program.
Financial Impact: Funds in the amount of $25,000 are budgeted in Water Fund,
Administration, Advertising Contracts 50685801.69530 for Fiscal Year 2011/12 for the City's
share of the rebate program. Depending on the level of customer participation and based on
the terms of the agreement, the City is pledging additional funds, up to a total of $30,000, the
balance of which will be subject to appropriation requests in subsequent fiscal years.
Recommended Action: Motion to:
-;AoDrove and authorize the Mayor and City Clerk -to execute the "Agreer gent Between th r ity
fr Huntington Beach and the Municipal Water District of grange Cou-ty for l✓2nrlp•'.toin
.e Weather Based Irrigation Timer (Smart ) � g `� gl � 'y
Timer Rebate PIV•"i'atii for Siii•' e-� aml�
R-esidential and Commercial Properties"
Alternative Action(s):
not approve the agreement and cease the City's participation in the program.
1113 -1 7- Item 2. - I
REQUEST FOR COUNCIL ACTION
MEETING DATE: 7/5/2011 DEPARTMENT ID NUMBER: PW 11-034
Analysis: In February 2005, the City began participating in the "Smart Timer'. .Rebate
Program. The program was developed and is managed by the Municipal Water District of
Orange County (MWDOC) with funding provided through the Metropolitan Water District of
Southern California (MWD). MWD provides "imported" water supply from the State Water
Project and the Colorado River to Southern California. MWDOC is a member agency of
MWD and the City is a member agency of MWDOC. Under the Smart Timer Program,
single-family residential and commercial property owners are provided rebates for the
installation of weather -based irrigation timers/controllers. The controllers obtain real time
satellite weather information and irrigate accordingly. It is estimated that through this more
efficient use of water the average single-family homeowner can save over 15,000 gallons of
water per year. Savings are estimated to be up to ten times greater for larger landscapes,
such as commercial properties, homeowners associations, parks, schools or industrial
complexes.
MWDOC has determined that the average customer has nine watering zones or valves. The
estimated cost to purchase a controller to run nine zones is $340 and the estimated cost for
installation is $150, for a total of $540. Based on this, the current maximum per clock rebate
amount for single-family and smaller commercial customers is $400 per residential Smart
Timer.
The City share of the rebate program is $75 per residential Smart Timer. Per the agreement
with MWDOC, as of July 1, inspections will begin to go from 100% to a lesser number (as low
as 10%). If the participating agency desires inspections to continue at 100%, MWDOC can
either facilitate inspections through Mission RCD (MWD's Contractor) at a rate of $89 per
inspection or the participating agency may perform self inspections at their own expense.
Larger commercial/institutional/industrial irrigated properties are eligible for a rebate of
$120/acre of irrigated landscape, however, the cost of this rebate is currently 100% funded
by MWD under their "Save a Buck" Rebate Program.
Environmental Status: Not applicable.
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Attachment::x-�l:
"Agreement Between the City of Huntington Beach and the
Municipal Water District of Orange County for Participation in the
Weather Based Irrigation Timer (Smart Timer) Rebate Program
for Sinqle-Family Residential and Commercial Properties"
Item 2. - 2 1113 -1 8-
ATTACHMENT #1
Agreement Between the City of Huntington Beach and
the Municipal Water District of Orange County
for Participation in the
Weather Based Irrigation Timer (Smart Timer) Rebate Program
for Single -Family Residential and Commercial Properties
This Agreement is made by and between the Municipal Water District of Orange County
("MWDOC"), and the City of Huntington Beach ("Participating Agency"), for participation and co -funding
of a Smart Timer Rebate Program for Single Family Residential and Commercial Properties
("Program") to be offered in Participating Agency's service area.
RECITALS
WHEREAS, MWDOC has developed and arranged for Grant funding through other sources for
a Program to provide enhanced rebates, beyond Metropolitan Water District of Southern California's
CMetropolitan") basic rebate funding levels to owners of single family residences and commercial
properties to encourage them to retrofit existing operable irrigation timers with devices that control the
amount of water used based upon weather conditions ("Smart Timers"); and
WHEREAS, Program funding is sufficient to provide rebates for up to Three Thousand (3,000)
Smart Timers installed by qualified applicants in the Program area. Participating Agency is eligible to
participate in the Program and agrees to provide funding at the amount per residential Smart Timer
specified in Table 1 below and, if Participation Agency so elects, at the amount per commercial Smart
Timer station specified in Table 2 below, up to the "Not to Exceed Funding Limits" set forth in Tables 1
and 2; and
WHEREAS, MWDOC through its contract with both Metropolitan and its installation inspection
and verifications consultant will conduct up to 100% installation verification of commercial and
residential Smart Timer installations; and
WHEREAS, the Program's objectives are to achieve savings in water consumption, reduce
water runoff to storm drains and natural water bodies, and promote the goals of the Best Management
Practices.
AGREEMENT
NOW, AND THEREFORE, it is agreed by MWDOC and Participating Agency as follows:
1. Residential Properties: MWDOC will contract for rebate services with Metropolitan ("Rebate
Contractor") to access their "SoCal Water Smart" residential rebate program for Smart Timers.
A prospective residential applicant who wants to participate in the Program must contact the
Rebate Contractor at www.socalwatersmart.com to fill out an online rebate application. The
Rebate Contractor will notify the prospective applicant with an online application confirmation
notice instructing applicant to mail in the Smart Timer purchase receipt indicating brand, model,
price, and any installation costs, and a recent water bill for the site where the Smart Timer will
be installed within 60 days of application confirmation. The Rebate Contractor will check each
returned application for completeness and determine the eligibility of the applicant to participate
in -the Program.
Through the application process, all residential Smart Timer applicants must agree to on -site
installation verification as a condition for participation in the Program. Not all residential Smart
Timer applicants will be subject to on -site installation verification. MWDOC will be responsible
for determining whether a particular installation will be inspected and the manner of verification
required, if any. MWDOC. will work with the Rebate -Contractor tofacilitate.final rebate
processing and issuance of the rebate check
2. Co~r mercial Properties: MWDOC will contract for rebate services with Rebate Contractor to
access its "Save a Buck" commercial rebate program for commercial Smart Timers.
A prospective commercial applicant who wants to participate in the commercial Smart Timer
Rebate Program must contact the Rebate Contractor at www.arwdsaveabuck.com to request a
rebate reservation number prior to the purchase and installation of a Program eligible Smart
Timer. If approved through the online reservation process, applicant will receive, via email, a
reservation confirmation notice. (Vote that securing a reservation is a threshold requirement, and
any attempt by a prospective commercial applicant to purchase a Smart Timer first and then
secure a reservation will be rejected by the Rebate Contractor. Within five business days of the
reservation confirmation notice, Applicant will receive a hard copy of the rebate application
packet. Applicant then has 60 days to return, via regular mail, the signed application form,
reservation letter, a current water bill, and the purchase receipt for the installed commercial
Smart Timer.
Through the application process, all commercial Smart Timer applicants must agree to on -site
installation verification as a condition for participation in the Program_ Not all commercial Smart
Timer applicants will be subject to on -site installation verification. MVVDOC will be responsible
for determining whether a particular installation will be inspected and the manner of verification
required, if any. MWDOC will work with the Rebate Contractor to facilitate final rebate
processing and issuance of the rebate check.
3. OC's Obligations: MWDOC will be responsible for designing the Program, setting the
rebate level paid to a qualified applicant, providing all necessary staffing, materials, and
administration to manage and implement the Program, and preparing reports on the
Program's results through contractors and its own staff. These services will include:
• Providing marketing and informational material for the Program, except as noted in the
Participating Agency Obligations section of this Agreement;
® Working with Metropolitan and its Rebate Contractor to establish eligibility requirements
for prospective Program applicants;
• Providing a website, a toll -free telephone number, and printed informational materials for
prospective applicants to learn about the Program and the steps to participate;
• Informing applicants about the eligible Smart Timer technologies and where they may
purchase an appropriate Smart Timer. (Purchase, installation and functioning of Smart
Timers will be the responsibility of the property owner, and applicants will be required to
waive and release any claims against MWDOC, Metropolitan, and the Participating
Agency in order to receive a rebate);
® Facilitating quality control, verification of installation of Smart Timers, and collection of
data;
® Using Metropolitan's minimum per residential Smart Timer funding, MWDOC's acquired
Grant Funds, and Participating Agencies required per residential Smart Timer funding as
stated in Table 1 below, setting the residential per Smart Timer enhanced rebate levels
paid to applicants.
• If the Participating Agency wishes to add additional funds for commercial Smart Timers, as
stated in Table 2 herein, above the minimum amount funded by Metropolitan to increase
the commercial rebate level, MWDOC will facilitate the Participating Agency's additional
funding with the Program's Rebate Contractor;
• Facilitating payment, through the Rebate Contractor, to both residential and commercial
rebate participants who have completed the participation requirements as provided herein
to the satisfaction of MWDOC,
• Developing a database of information regarding Program participation, including the types
of Smart Timers for which rebates are given;
• Providing monthly electronic and written reports of Program activity to Participating
Agency;
• Invoicing Participating Agency for the specified amount per residential Smart Timer as
stated in Table 1, up to the "Not to Exceed" amount set forth in this Agreement;
• If Participating Agency elects to increase the commercial Smart timer rebate at the levels
shown in Table 2, MWDOC will invoice Participating Agency for those associated costs up
to the "Not to Exceed" amount set forth in this Agreement-,
• When on -site Smart Timer installation verification inspection is conducted by MWDOC's
verification consultant, MWDOC will direct the verification consultant to facilitate the
issuance of inspection notifications and on -site verifications for residential and commercial
Smart Timers within Participating Agency's service area;
• MWDOC will work with the Rebate Contractor to track rebates paid to qualified residential
and commercial applicants in order to limit the total number of rebates issued within
Participating Agency's service area and assure that the total of the residential "per Smart
Timer" and commercial "per station" rebate contributions are within the "Not to Exceed"
amounts shown in Table 1 and 2, below;
• Residential or commercial rebates will be offered on a first come -first served basis while
Program funding lasts. Therefore, if residential applications received from Program
applicants throughout MWDOC's implementation area exhaust the number of rebates
available under the Program, rebates may not be available within Participating Agency's
service territory up to the maximum "Not to Exceed" number provided herein. MWDOC
does not guarantee any minimum number of rebates will be available for Participating
Agency's service area.
• MWDOC agrees to maintain the confidentiality of Participating Agency's customer names,
addresses and other information about the Program applicants gathered in connection
with the Program, and will not cause or permit the disclosure of such information except as
necessary to carry out the requirements of the Program. To the extent MWDOC contracts
with third -party contractors to carry out all or any portion of the Program, MWDOC will
require the contractors to maintain the confidentiality of said customer information.
4. Participating Aaencv Obligations: Participating Agency agrees to the following:
• Participating Agency will use reasonable efforts to assist MWDOC with the marketing of
the Program within the Participating Agency's service area. Participating Agency will
distribute MWDOC-produced marketing material through its direct communication with
customers within its service territory. This can be accomplished through the use of bill
inserts, by placing marketing material at Participating Agency customer service counters,
and by various means of directly advocating the Program to the public. The fact that
Participating Agency elects to provide marketing shall not offset or otherwise reduce the
Participating Agency's funding obligation;
• Participating Agency agrees to provide funding for the Program in the amount specified in
Table 1 below per residential Smart Timer. Funding will be provided on a per Smart Timer
basis up to the "Not to Exceed" funding limit:
Table 1
Category
No. Smart
Funding
Not to Exceed Funding Limit;
Timers
Amount
For Fiscal Years 2011-13
Residential
666
$75 per Smart
$50,000
Timer
• If Participating Agency elects to provide additional funding for commercial Smart Timers,
Table 2 below shall list the Participating Agency's funding amount per commercial Smart
Timer station. Commercial Smart Timer rebates are calculated on the commercial Smart
Timer's station capacity, and Participation Agency's funding amounts shall be in addition
to the per station amount provided by the Program.
Table 2
Category
No. of Stations
Funding
Not to Exceed Funding Limit;
Amount
For Fiscal Years 2011-13
Commercial
0
$0 per Station
$0
Smart Timer
• MWDOC will invoice Participating Agency on a monthly basis for rebates issued in the
previous month period, and payment will be due within thirty (30) days of the date of the
invoice.
• Participating Agency may increase its "Not to Exceed" Funding Limits under this Letter
Agreement by written notice to MWDOC's General Manager made by the undersigned
representative of the Participating Agency or his or her successor. Any increase must follow
the form in Tables 1 — 2, and written notice of an increase must be received prior to the
exhaustion of available funding.
• By participating in this Program, the Participating Agency acknowledges and agrees that
MWDOC is permitted to use historical water consumption data for purposes of satisfying any
grant water use and water quality evaluation requirements of the Program. A similar
agreement will be required of every applicant.
5. Indemniflcatlon: MWDOC has designed the Program as a rebate program in which the
applicant is solely responsible for selecting, purchasing, and installing the Smart Timer. The
applicant will be required to sign a release and waiver of any claims against MWDOC, the
Participating Agency, and any other funding agency as a condition of participating in the
Program. To the extent MIJVDOC or the Participating Agency or their staff performs any
activities in connection with the Program, each agrees to indemnify and hold the other, and
Metropolitan, harmless from any and all liability, claims, obligations, damages and suits arising
out of its negligence or liability without fault in the performance of such activities, except to the
extent such liability, claims, obligations, damages or suits arise from the other's, or
Metropolitan's, negligence or liability without fault.
6. Term: The Program commenced on or about September 1, 2004, and until June 30, 2011 was
covered under separate, previous agreements. Effective July 1, 2011, this agreement
supersedes all previous agreements between MWDOC and Participating Agency regarding
Smart Timer rebate programs and will continue until June 30, 2013 or until the targeted number
of rebates has been exhausted, whichever occurs first ("Program Expiration"). Prior to reaching
the "Not to Exceed" funding levels shown in Table 1, MWDOC will notify Participating Agency of
the depleted funding levels, and request Participating Agency to increase the funding levels by
written notice as provided herein. If Participating Agency declines the request to increase its
funding levels in Table 1, MWDOC will direct the Rebate Contractor to discontinue offering the
enhanced residential rebate levels in Participating Agency's service area. Rebate levels for
residential Smart Timers would revert to Metropolitan's rebate level for the Program.
Early Termination: Participating Agency may terminate this Agreement prior to the Program
Expiration date, or prior to distribution of the maximum number of rebates for Participating
Agency's service area, upon thirty (30) days' written notice to MWDOC. MWDOC may terminate
this Agreement prior to the Expiration Date, or prior to distribution of the maximum number of
rebates for Participating Agency's service area, without prior notice in the event funding for this
Program is exhausted, reduced, or eliminated from any funding source. Otherwise, MWDOC
may terminate this Agreement for any reason upon thirty (30) days' written notice to
Participating Agency. Participating Agency will be responsible for payment of its funding
contribution for all rebates made before and after the effective date of the termination for all
applications initiated by Program applicants within Participating Agency's service area prior to
the effective date of the termination. For purposes of this paragraph, an application is deemed
initiated when the Program applicant obtains an application and his participation is logged -in by
the Rebate Contractor. Whether the Agreement is terminated by Participating Agency or
MWDOC, MWDOC will nevertheless provide Participating Agency with reports of rebate
activities in Participating Agency's service area.
IN WITNESS WHEREOF, the parties hereto have executed this reement by and through the
authorized officers on , 2011.
MUNICIPAL WATER DISTRI T OF OF HUNTING BEACH
ORANGE OUNTYA i IV ipal Corporation
)//n /q".-
Kevin P. Hun , Ge r n ger ay
or O^
Appr yed as t
Kidman, Behrens & Tag LP
Russell G. Behrens
Daniel J. Payne
Legal Counsel
as to Form
Initiated and Approved:
Director of Public orks
Rev nd Approved:
ly Acyninistrator