SUBJECT: SECOND AMENDMENT TO THE AGREEMENT WITH CONSERVATION RETROFITTER, INC., DBA CALIFORNIA WATER CONSERVATION COMPANY
RECOMMENDATION
Approval of a second amendment to the agreement with Conservation Retrofitter, Inc., DBA California Water Conservation Company (CWCC), to extend each of the three program elements by one month, from June 30, 2002 to July 31, 2002, and to delay the beginning and ending dates of the small multi-family dwelling (SmMFD) program element’s Optional Extended Services Period by the same time period of one month, to begin on August 1, 2001 and end on September 30, 2002, at no additional cost to the City.
BACKGROUND
On September 17, 1997, the
Regional Water Quality Control Board accepted the Revised South Bay Action
Plan, which describes the projects necessary to reduce average dry weather
effluent flow from the San Jose/Santa Clara Water Pollution Control Plant
(WPCP) to below 120 million gallons per day (mgd) and protect salt marsh
habitat for endangered species in the South Bay. The five-year Water Efficiency Program promotes water
conservation to residents and businesses using education and the provision of
services and financial incentives. The
Program supports efforts to reduce flows from the WPCP and is one element of
the South Bay Action Plan.
On June 27, 2000, the City entered into an agreement with CWCC to implement a full-service ultra-low flush toilet (ULFT) installation retrofit program, which is actually a combination of three programs (collectively known as “SmMFDetc”) designed for three separate target audiences within the Trib’s residential areas (i.e., households served by the San Jose/Santa Clara Water Pollution Control Plant, or the WPCP). These three programs collectively involve 18,200 retrofits and were divided as follows:
1. SmMFD Program: Targets installation of 3500 ULFTs in small multi-family dwelling complexes with 2 to 50 units, with the City subsidizing all costs except $15 per ULFT;
2. Community Partnership Program (CPP): Targets single-family households meeting one of the following eligibility criteria: Low income and other “hard to reach” targeted areas, and for elderly (age 65 and over) and disabled residents; involves a goal of 7500 retrofits at no charge to participants;
3. Fee-For-Service Program (FFS): Targets single-family households that don’t meet the CPP criteria with 1000 retrofits at a cost to participants of $50 per ULFT.
An option to extend the SmMFD program goal by an additional 6200 ULFTs was exercised on July 7, 2000 with a letter from the Director of Environmental Services. A second option to extend the SmMFD program element by 4500 ULFTs was exercised on April 27, 2001, though the exact dates for that extension are subject to approval of this recommendation for a second amendment to the agreement.
On February 13, 2001, the City Council approved a first amendment to the agreement with CWCC which made several programmatic changes including extending the term of the agreement by one month and removing the Tenant Waiver Requirement section of the SmMFD program element, which had proven to be a substantial marketing barrier. A cost reduction for the SmMFD program was negotiated with CWCC in exchange for removal of the Tenant Waiver Requirement section of the SmMFD program. In addition, the program goals for the SmMFD and Fee-For Service programs were adjusted so that 2000 ULFTs were removed from the SmMFD program goal and the same quantity was added to the Fee-For-Service program goal. Therefore, the SmMFDetc program goals (including the two Optional Extended Service Periods for SmMFD that have been exercised already) are as follows:
· SmMFD program: 12,200 ULFTs.
· CP program: 7500 ULFTs.
· FFS program: 3000 ULFTs.
Removal of the Tenant Waiver Requirement section of the SmMFD program element has proven to be highly successful toward the achievement of that program’s goal. However, the logistics of actually installing ULFTs in the SmMFD market have proven to be more difficult than anticipated due to the need to coordinate the installations with the property owners and managers, which represents a layer of coordination to which the two single-family dwelling (SFD) program elements are not subjected.
Although the two SFD-targeted programs were on course to achieve their performance goals prior to the first amendment, the additional logistical time needed to coordinate the SmMFD installations has impacted CWCC’s installation schedule for the SFD programs during the time since the first amendment was approved. Discussion between staff and CWCC has determined that an additional month will ensure achievement of the performance goals for all three programs.
Therefore, it is recommended that the Basic Service Periods be extended by one month, from June 30, 2002 to July 31, 2002 for all three programs (this includes their one-year callback periods), and that the SmMFD program’s Extended Services Period also be moved by one month so that it begins on August 1, 2001, and ends on September 30, 2002 (including its one-year callback period).
Not applicable.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office and is scheduled to be heard at the June 14, 2001, Treatment Plant Advisory Committee meeting.
COST IMPLICATIONS
The proposal to extend the agreement by one month will not impact program costs.
CARL W. MOSHER
Director, Environmental Services Department