To: HONORABLE MAYOR AND From: Carl W. Mosher

CITY COUNCIL

Subject: SEE BELOW Date: 10-16-03

SUBJECT: AGREEMENT WITH THE SANTA CLARA VALLEY WATER DISTRICT FOR IMPLEMENTATION OF WATER CONSERVATION PROGRAMS FOR 2003-2004

RECOMMENDATION

Approval of an Agreement with the Santa Clara Valley Water District (District) for cost sharing associated with implementation of water conservation programs in 2003-2004, under which the City will receive an amount not to exceed $362,500 from the District and the District will receive an amount not to exceed $446,847 from the City.

BACKGROUND

The City’s Water Efficiency Program (WEP) promotes indoor water conservation to residents and businesses using education, the provision of Ultra-Low Flow Toilets, and financial incentives. WEP efforts contribute to limiting flows the San Jose/Santa Clara Water Pollution Control Plant, which reduces the volume of flow that must be treated. Limiting flow also helps preserve salt-marsh habitat for two endangered species by reducing the volume of Plant discharge to San Francisco Bay. Past Cost Sharing Agreements between the City and the District have contributed to the success of the City’s efforts to limit flows to the Plant.

ANALYSIS

The recommended agreement continues the cooperative water conservation efforts established between the District and the City in earlier cost sharing agreements. Under this agreement the City will reimburse the District $1.57 per gallon per day of flow reduction that is estimated to be achieved through District implementation of certain conservation programs within the tributary area of the Plant. This is a departure from previous agreements in which the City reimbursed the District on a per unit basis, such as per ULFT retrofit or per washing machine rebate. This new method for calculating reimbursement to the District is based on industry standards for estimating water savings, and will be applied to the following programs: high efficiency washing machine replacement programs, ultra low flow and high efficiency toilet replacement programs, and the pre-rinse sprayer valve replacement program.

The District will continue to receive reimbursement under the Agreement on a unit price basis for the following programs: water wise house calls, water softener replacement, and commercial/institutional appliance replacement (x-ray equipment, dentist dry vacuum equipment and urinals). Staff believes that the proposed compensation mix will help promote programs with the greatest potential for water savings, while still providing sufficient program flexibility to the District.

The agreement also continues the District reimbursement to the City for up to $337,500 to cover one half the cost of rebates provided to businesses within the Plant’s tributary area that use the Water Efficient Technology (WET) program to reduce flows.

The agreement also establishes a new reimbursement amount from the District to the City not to exceed $25,000 for the City's Neighborhood Preservation Water Conservation Pilot Program. This pilot program implemented by the City will provide up to $400 to residents who will be identified by ESD, working with Code Enforcement staff, as good candidates for the installation of water efficient landscaping, thus helping conserve water supply and beautify San Jose’s neighborhoods.

PUBLIC OUTREACH

Public Outreach was not undertaken for this cost sharing agreement between the Santa Clara Water District (District) and the City of San Jose. Past Cost Sharing Agreements between the City and the District have contributed to the success of the City’s efforts to limit flows to the Plant. The present recommended agreement will continue to ensure this success.

COORDINATION

This memorandum has been coordinated with the City Attorney’s Office and the Budget Office and was scheduled to be heard at the October 9, 2003 Treatment Plant Advisory Committee (TPAC) meeting.

COST IMPLICATIONS

The cost to the City of this cost-sharing agreement will not exceed $446,847. Revenues will be up to $362,500. Existing funds are available to fund this agreement. No appropriation action is required.

This recommendation meets the general principles of the Mayor’s FY 2003-04 Budget Strategy by protecting two Environmental and Utility Services core services:

1. Healthy Streams, River, Marsh, and Bay

2. Safe, Reliable and Sufficient Water Supply

BUDGET REFERENCE

Fund #	Appn #	Appn. Name	RC#	Total Appn.	Amt. for contract	2003-2004 Proposed Operating Budget Page	Last Budget Action (Date, Ord. No.)
513	0762	Non-Personal/ Equipment	100680	30,196,654	421,847	871	9/9/03 Ord. No. 26978
446	0766	Yard Trimmings/Street Sweeping	500554	1,300,691	25,000	867
		Total			446,847

CEQA

Not a project.

CARL W. MOSHER

Director, Environmental Services Department