COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC UTILITIES
DATE: NOVEMBER 18, 2008
FROM: PUBLIC UTILITIES GENERAL MANAGER
SUBJECT: APPROVAL OF FIRST AMENDMENT TO WATER CONSERVATION FUNDING AGREEMENT NO. 70026 WITH METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA
ATTACHMENT (Y/N): YES ITEM # 22
201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5137
www.anaheim.net
APPROVAL OF FIRST AMENDMENT TO WATER CONSERVATION FUNDING AGREEMENT NO. 70026 WITH METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA
RECOMMENDATION:
That the City Council, by Motion:
- Approve the First Amendment to Water Conservation Funding Agreement No. 70026 with the Metropolitan Water District of Southern California (MWD) to participate in its Region-wide Residential Conservation Program.
- Authorize the Public Utilities General Manager, on behalf of the City to execute the First Amendment to Agreement and related documents, and take such actions as are necessary to implement the Agreement.
DISCUSSION:
Anaheim purchases between 25 to 36 percent of our total water supply from the Metropolitan Water District of Southern California (MWD). As a member agency, Anaheim receives funding from MWD to support the City’s conservation programs. In July 2006, the Water Conservation Funding Agreement No. 70026 was approved between Anaheim and MWD to facilitate the implementation of a variety of water conservation programs and financial incentives to maximize the benefit of offering these services to Anaheim customers.
Under this current agreement, MWD provides funding for various residential water conservation measures, such as high efficiency toilets, weather based irrigation controllers (smarttimers), artificial turf, and rotating sprinkler nozzles. Previously, these programs were being administered for Anaheim by the Municipal Water District of Orange County (MWDOC). However, with MWD’s inception of the Region-wide Residential Conservation Program administered by Electric & Gas Industries Association (EGIA) in July 2007, MWDOC elected to participate in this new program and will no longer process rebate applications for Anaheim.
The First Amendment to the Water Conservation Funding master agreement stipulates that Anaheim can elect to participate in MWD’s Region-wide Residential Conservation Program with administrative support to be provided by EGIA. This change is beneficial to Anaheim in that we will retain the ability to offer various conservation incentives to our customers, administer our own programs and be eligible to receive incentives from MWD. Moreover, MWD’s decision to hire a contractor to manage its residential program is consistent with its commercial rebate programs under the “Save A Buck” Program, which are administered by Honeywell.
The Water Conservation Funding master agreement, compared with separate agreements for each residential program, has proven to be advantageous to MWD, the City, and Anaheim customers. Through amendments to the current agreement, MWD has been able to offer conservation credits for new programs and increase funding for specific incentives as additional grant monies became available, or as studies indicated the benefits of such changes. This has enabled the City to offer greater incentives to Anaheim residents without the delay or administrative expense of additional agreements or contract amendments requiring approval of each participating agency. For example, an amendment to the existing contract allows us to pass on rebate incentives to our customers for high-efficiency and dual flush toilets, and receive conservation credits for the rebates, even though these items were not listed in the original agreement.
The Water Conservation Funding master agreement has a seven year term and expires June 30, 2015. This Agreement will allow the City to continue providing programs that assure our continued compliance with the California Urban Water Conservation Council’s best management practices for water conservation, protect our water supplies, and benefit Anaheim utility customers.
IMPACT ON BUDGET:
There is no impact on the General Fund. Sufficient funds are budgeted in the Water Conservation Program account number 501-521-3253.
Respectfully submitted,
Marcie L. Edwards
Public Utilities General Manager
Attachment:
1. First Amendment to Agreement No. 70026 Water Conservation Funding Agreement