HomeMy WebLinkAboutStaff Report 3.H 06/06/2016Agenda Item #3.H
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DATE: June 6, 2016
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan t. J 1 ASCE — Director, Public Works and Utilities
Leah Walker, P.E. — Environmental Services Manager
SUBJECT: Resolution Authorizing the City Manager to Sign an Agreement with the Sonoma
County Water Agency for Proposition 84 Grant Funding for Water Use Efficiency
Program
RECOMMENDATION
It is recommended that the City Council approve the Resolution Authorizing the City Manager to
Sign an Agreement with the Sonoma County Water Agency for Proposition 84 Grant Funding
for Water Use Efficiency Program.
BACKGROUND
On July 20, 2015, the California Department of Water Resources approved a Proposition 84
grant application by the Association of Bay Area Governments (ABAG) for implementing the
Bay Area Drought Relief Program. ABAG then executed an agreement with Alameda County
Waste Management Authority to implement the Bay Area Regional Drought Relief and Water
Conservation Project, of which the Sonoma County Water Agency (Water Agency) is one of
twelve participating agencies. The Proposition 84 Integrated Regional Water Management Grant
Memorandum of Understanding (MOU) governs the Project. Under the MOU, the Water Agency
was awarded a grant of $535,050 to implement water -use efficiency programs. The Water
Agency has been authorized to distribute grant funding to North Marin Water District, City of
Sonoma, Sonoma Valley County Sanitation District, City of Petaluma, and Penngrove Sanitation
Zone.
The new grant funding is specifically for water -use efficiency programs such as turf conversion
incentive programs, and high efficiency appliance rebates. The City of Petaluma's rebate
program for high efficiency toilets and clothes washers and the turf conversion program, Mulch
Madness, are eligible for Grant funding under the MOU.
DISCUSSION
The Funding Agreement will provide the City with up to $176,250 in grant funding from the
Prop 84 MOU for the activities listed in Exhibit A, Program Summary, of the attached Funding
Agreement. The funding is focused on the programs that save the most potable water at the
lowest cost. The funding will pay 75% of the Program costs and makes available approximately
$9,375 for the Mulch Madness Program, $33,525 for the High Efficiency Toilet Rebate Program,
and $133,350 for the High Efficiency Clothes Washer Rebate Program. The City is required to
pay the remaining 25% as a match to the grant.
The turf conversion program and high efficiency toilet and clothes washer rebate program are
consistent with the California Urban Water Conservation Council's ( CUWCC) Best
Management Practices (BMPs) as well as the City of Petaluma's Water Conservation Plan. The
City and the Water Agency are both signatories to the CUWCC Memorandum of Understanding
Regarding Urban Water Conservation in California and are therefore required to meet the BMP
guidelines outlined therein.
This action is consistent with General Plan 2025 Goal 8 -G -5: "Maximize water conservation
measures to improve water use efficiency and reduce overall water demand."
FINANCIAL IMPACTS
The City is required to match grant funding at a minimum of 25% for this agreement or
$44,062.50. The current water conservation program budget is $716,170.00, which will provide
the grant matching requirements.
ATTACHMENTS
1. Resolution Authorizing the City Manager to Sign an Agreement with the Sonoma County
Water Agency for Proposition 84 Grant Funding for Water Use Efficiency Program
2. Funding Agreement for the City of Petaluma Water Conservation Program
2
Attachment 1
RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN AN AGREEMENT
WITH THE SONOMA COUNTY WATER AGENCY FOR PROPOSITION 84 GRANT
FUNDING FOR WATER USE EFFICIENCY PROGRAM
WHEREAS, the City of Petaluma wishes to continue to improve water use efficiency in
order to reduce operating costs, avoid or defer capital improvement costs associated with
expansion of water supply and wastewater disposal systems, minimize associated environmental
impacts, and meet the criteria and standards of state and federal regulatory agencies; and
WHEREAS, the City of Petaluma and the Sonoma County Water Agency (Water
Agency) are signatories to the Memorandum of Understanding Regarding Urban Water
Conservation in California (MOU) as governed by the California Urban Water Conservation
Council (CUWCC); and
WHEREAS, the MOU identifies water conservation Best Management Practices (BMPs)
that achieve long -term reductions in per- capita water demand to improve supply reliability,
reduce the impact of short -term water shortage conditions, and provide a more accurate basis for
future water management planning efforts; and
WHEREAS, the City of Petaluma Water Conservation Plan also identifies numerous
water conservation programs and measures that further improve water use efficiency throughout
the City; and
WHEREAS, on July 20, 2015 the Department of Water Resources approved a
Proposition 84 grant application by the Association of Bay Area Governments for implementing
the Bay Area Drought Relief Program; and
WHEREAS, the Water Agency is a. participating agency in the Bay Area Proposition 84
Integrated Regional Water Management Grant Memorandum of Understanding (Prop 84 MOU);
and
WHEREAS, under the Prop 84 MOU, the Water Agency was awarded grant funding to
implement water use efficiency programs for local water retailers; and
WHEREAS, the Water Agency will distribute Grant funding for water use efficiency
programs to North Marin Water District, City of Sonoma, Sonoma Valley County Sanitation
District, City of Petaluma, and Penngrove Sanitation Zone; and
WHEREAS, the City of Petaluma will use the grant funding to offset costs in the
existing water conservation budget and to help reduce water operating costs.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby authorizes the City Manager to sign an agreement substantially in accordance
with the attached agreement with the Sonoma County Water Agency for Proposition 84 Grant
Funding for Water Use Efficiency Program.
3
Attachment 2
ba:s: \techw \agreements \1415- 106.docx version: 4/5/2016 9:54:00 AM
TW 15/16 -060
Funding Agreement for the
City of Petaluma Water Use Efficiency Program
This Agreement is between the Sonoma County Water Agency, a body corporate and politic of the
State of California (hereinafter "Water Agency "), and City of Petaluma (hereinafter "City ").
RECITALS
A. California is in the fourth year of a significant drought that has reduced water storage levels to
unprecedented low levels and caused critical water shortages in some communities in the Bay
Area.
B. City and Water Agency share the goal of promoting increased water use efficiency in order to
reduce operating costs, avoid or defer capital improvement costs associated with expansion of
water supply and wastewater disposal systems, minimize associated environmental impacts, and.
meet the criteria and standards of state and federal regulatory agencies.
C. The Restructured Agreement for Water Supply ( "Restructured Agreement ") authorizes Water
Agency to implement and fund water conservation measures that are cost - effective and will reduce
water demands on Water Agency's water transmission system.
D. City and Water Agency are signatories to the Memorandum of Understanding Regarding Urban
Water Conservation in California (MOU) as governed by the California Urban Water Conservation
Council (CUWCC).
E. The MOU identifies water conservation Best Management Practices (BMPs) that achieve long -term
reductions in per- capita water demand to improve supply reliability, reduce the impact of short -
term water shortage conditions, and provide a more accurate basis for future water management
planning efforts.
F. On July 20, 2015, Department of Water Resources executed a grant agreement with Association of
Bay Area Governments, to implement the Bay Area Drought Relief Program.
G. The Association of Bay Area Governments, acting as the Lead Applicant, executed an agreement
with Alameda County Waste Management Authority ( "StopWaste ") to implement the Bay Area
Regional Drought Relief and Water Conservation Project ( "Project "), a component of the Bay Area
Drought Relief Program.
H. The Water Agency is one of twelve agencies participating in the Project, which is governed by the
Bay Area Proposition 84 Integrated Regional Water Management 2014 Drought Grant
Memorandum of Understanding (Prop 84 MOU).
I. Under the Prop 84 MOU Water Agency was awarded $535,050 funding ( "Grant ") to implement
water use efficiency programs. Water Agency will distribute Grant funding for water use efficiency
programs to City of Sonoma, North Marin Water District, City of Petaluma, Sonoma Valley County
Sanitation District and Penngrove Sanitation Zone.
J. Water Agency and City have cooperated to develop and fund Water Use Efficiency Programs
(Program).
Funding Agreement for City of Petaluma Water Use Efficiency Program
4
K. Water Agency and City do mutually desire to cooperate in the implementation of City's Program.
AGREEMENT
City and Water Agency agree as follows:
1. RECITALS
A. The above recitals are true and correct.
2. LIST OF EXHIBITS
A. The following exhibits are attached hereto and incorporated herein:
1) Exhibit A: Program Summary
2) Exhibit B: Grant Reporting Form
3) Exhibit C: Grant Reporting Schedule
3. DEFINITIONS
A. For the purposes of this Agreement the following terms and definitions shall be used:
1) Program. The Water Use Efficiency Programs described in Exhibit A.
2) Measures. Components of the Program as identified in Exhibit A.
3) Participants. City- approved water customers who apply to participate in Measures as
described in Exhibit A.
4) Grant - Funded Measures. Water Use Efficiency incentives described in Exhibit A that are
funded by Department of Water Resources Proposition 84 grant.
5) Water Agency Representative. Water Agency staff assigned to perform Water Agency's
responsibilities.
6) City Representative. City staff assigned to perform City's responsibilities.
Funding Agreement for City of Petaluma Water Use Efficiency Program 2
5
4. COORDINATION
A. City shall coordinate work with Water Agency's Representative. Contact information:
Water Agency
City
Water Agency Representative:
Carrie Pollard, Water Agency Principal
Programs Specialist, or assigned
personnel
City Representative.
Leah Godsey Walker, Environmental
Services Manager, or assigned
personnel
Grant Manager: Lynne Rosselli
Phone: (707) 524 -3771
Email: lynne.rosselli @scwa.ca.gov
Sonoma County Water Agency
City of Petaluma
404 Aviation Boulevard
3890 Cypress Drive
Santa Rosa, CA 95403 -9019
Petaluma, CA 94954
Phone: 707 - 547 -1968
Phone: (707) 778 -4583
Email: carrie.pollard @scwa.ca.gov
Email: (walker @ci.petaluma.ca.us
5. CITY'S RESPONSIBILITIES
Assist Water Agency with administration of Program as follows:
A. Applicant Review. Review list of applicants requesting Program incentives to determine if
applicant is a qualified Participant to receive an incentive.
B. Communication. Provide regular communication via email or phone with Water Agency
Representative on incentives awarded, budget tracking, and other issues as required.
C. Quarterly Reports. Complete the Grant Reporting Form (Exhibit B) for Program activities
and submit before deadline on schedule (Exhibit C).
D. Matching Funds. City shall ensure that a minimum of 25% of total grant award in matching
funds is available for Program implementation as required by the Grant. Matching funds
shall be reported by City on Grant Reporting Form (Exhibit B).
E. CUWCC Online BMP Report. Annually enter BMP data on CUWCC online forms, as required
by CUWCC, for City -run Measures and provide Water Agency with a copy of the BMP report.
F. Record Keeping. Maintain complete and accurate records of all transactions in compliance
with generally accepted accounting principles for enterprise accounting as promulgated by
the American Institute of Certified Public Accountants and the Governmental Accounting
Standards Board. Such records shall be available to Water Agency at all reasonable times
for inspection and analysis.
6. WATER AGENCY'S RESPONSIBILITIES
A. Prop 84 MOU. Water Agency shall be a participating agency under the Prop 84 MOU.
B. Coordination. Coordinate, document, and report on the Measures that Water Agency
performs, including management, administration, budget, and follow -up of Measures
described in Exhibit A.
Funding Agreement for City of Petaluma Water Use Efficiency Program
6
C. Quarterly Reports. Prepare quarterly reports summarizing status of Measures completed
by Water Agency and City. Submit the report to StopWaste.
D. CUWCC Online Reporting. Annually enter BMP data on CUWCC online forms for Water
Agency -run Measures.
E. Record Keeping. Water Agency will maintain complete and accurate records of all Water
Agency costs and transactions associated with performance of Water Agency's
responsibilities under this Agreement in compliance with generally accepted accounting
principles for enterprise accounting as promulgated by the American Institute of Certified
Public Accountants and the Governmental Accounting Standards Board. Such records will
be available to City at all reasonable times for inspection and analysis.
7. FUNDING
A. Grant Funding:
1) Water Agency will submit invoices and receive funds from Lead Applicant under the
Prop 84 MOU based on activities reported by City per Paragraph 5 of this Agreement.
2) City may receive $176,250 from the Prop 84 MOU for activities per Exhibit A. Actual
payments to City will be based on the Measures actually implemented by City for each
component of the Program.
B. Grant Distribution. City shall report Program activities quarterly on Grant Reporting Form
(Exhibit B) to the Water Agency. Water Agency will distribute payments to City based upon
the Prop. 84 grant guidelines for City's activities upon receipt of funding under Prop 84
MOU.
8. MUTUAL INDEMNIFICATION
A. City agrees to defend, indemnify and hold Water Agency, its officers, employees and agents
harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for
injury or damages arising out of the performance of this Agreement but only in proportion to
and to the extent such liability, loss, expense attorneys' fees, or claims for injury or damages
are caused by or result from the negligent or intentional acts or omissions of City.
B, Water Agency agrees to defend, indemnify and hold City, its officers, employees and agents
harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for
injury or damages arising out of the performance of this Agreement but only in proportion to
and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages
are caused by or result from the negligent or intentional acts or omissions of Water Agency.
9. TERM OF AGREEMENT
A. This Agreement shall remain in effect until June 30, 2018, unless terminated earlier in
accordance with the provisions of Paragraph 10 of this Agreement.
10. TERMINATION OF AGREEMENT
A. This Agreement maybe terminated by either party for any reason upon thirty calendar
days' written notice by either party. Water Agency's right to terminate may be exercised by
Water Agency's General Manager.
Funding Agreement for City of Petaluma Water Use Efficiency Program 4
11. ADDITIONAL REQUIREMENTS
A. Authority to Amend Agreement. Changes to the Agreement may be authorized only by
written amendment to this Agreement, signed by both parties. Minor changes, which do
not increase the amount paid under the Agreement, and which do not significantly change
the Agreement or significantly lengthen time schedules may be executed by the Water
Agency's General Manager in a form approved by County Counsel. Notwithstanding this
authority, neither Water Agency nor City is under any obligation to approve such
amendments.
B. No Waiver of Breach. The waiver by Water Agency of any breach of any term or promise
contained in this Agreement shall not be deemed to be a waiver of such term or promise or
any subsequent breach of the same or any other term or promise contained in this
Agreement.
C. Construction:
1) To the fullest extent allowed by law, the provisions of this Agreement shall be construed
and given effect in a manner that avoids any violation of statute, ordinance, regulation,
or law. The parties covenant and agree that in the event that any provision of this
Agreement is held by a court of competent jurisdiction to be invalid, void, or
unenforceable, the remainder of the provisions hereof shall remain in full force and
effect and shall in no way be affected, impaired, or invalidated thereby.
2) City and Water Agency acknowledge that they have each contributed to the making of
this Agreement and that, in the event of a dispute over the interpretation of this
Agreement, the language of the Agreement will not be construed against one party in
favor of the other. City and Water Agency acknowledge that they have each had an
adequate opportunity to consult with counsel in the negotiation and preparation of this
Agreement.
D. No Third -Party Beneficiaries. Nothing contained in this Agreement shall be construed to
create and the parties do not intend to create any rights in third parties.
E. Applicable Law and Forum. This Agreement shall be construed and interpreted according to
the substantive law of California excluding the law of conflicts. Any action to enforce the
terms of this Agreement or for the breach thereof shall be brought and tried in the County
of Sonoma.
F. Captions. The captions in this Agreement are solely for convenience of reference. They are
not a part of this Agreement and shall have no effect on its construction or interpretation.
G. Merger. This writing is intended both as the final expression of the Agreement between the
parties hereto with respect to the included terms and as a complete and exclusive
statement of the terms of the Agreement, pursuant to Code of Civil Procedure Section
1856. No modification of this Agreement shall be effective unless and until such
modification is evidenced by a writing signed by both parties.
H. Survival of Terms. All express representations, waivers, indemnifications, and limitations of
liability included in this Agreement will survive its completion or termination for any reason.
I. Time of Essence. Time is and shall be of the essence of this Agreement and every provision
hereof.
Funding Agreement for City of Petaluma Water Use Efficiency Program 5
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as set forth below.
TW 15/16 -060
Reviewed as to funds:
By:
Water Agency Division Manager - Administrative
Services
Approved as to form:
By:
Cory O'Donnell, Deputy County Counsel
Sonoma County Water Agency
By:
Approved:
By:
Department Director
Approved:
By:
Finance Director
Approved as to form:
By:
City Attorney
Approved:
By:
City's Risk Manager
City of Petaluma
By:
City Manager
Grant Davis Date:
Water Agency General Manager
Authorized per Water Agency's Board of Directors
Action on March 1, 2016
Date:
Attest:
By:
City Clerk
Funding Agreement for City of Petaluma Water Use Efficiency Program 6
9
EXHIBIT A
Program Summary
1. GRANT FUNDED MEASURES
A. City will implement a turf conversion program providing incentives for converting turf. The
program will follow the guidelines below:
1) City will offer Participants a minimum of $0.50 /sq. ft. rebate for converting high water
use turf.
2) Grant will fund $0.375/sq, ft. per square foot removed. Approximately $9,375 will be
available from Grant funds for this program.
B. High Efficiency Toilet Rebate: City will implement a high efficiency toilet rebate program.
1) City will offer Participants a minimum of $100 rebate for installing a high efficiency
toilet.
2) Grant will fund $75 /toilet rebate. Approximately $33,525 will be available from Grant
funds for this program.
C. High Efficiency Clothes Washer Rebate: City will implement a high efficiency clothes washer
rebate program.
1) City will offer Participants a minimum of $50 rebate for installing a high efficiency
clothes washer.
2) Grant will fund no more than $75 /washer rebate or 75% of City rebate cost, whichever
is less. Approximately $133,350 will be available from grant funds for this program.
Funding Agreement for City of Petaluma Water Use Efficiency Program
10
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EXHIBIT C
Grant Reporting Schedule
Water Use Efficiency Program
Reporting Schedule
Reporting Period
Quarterly Reporting Form and
Documentation Due
1/1/2014
to
12/31/2015
1/15/2015
1/1/2016
to
3/31/2016
4/15/2015
4/1/2016
to
6/30/2016
7/15/2015
7/1/2016
to
9/30/2016
10/14/2015
10/1/2016
to
12/31/2016
1/14/2016
1/1/2017
to
3/31/2017
4/14/2016
4/1/2017
to
6/30/2017
7/14/2016
7/1/2017
to
9/30/2017
10/13/2016
10/1/2017
to
12/31/2017
1/15/2017
1/1/2018
to
3/31/2018
4/14/2017
4/1/2018
to
6/30/2018
7/13/2017
Funding Agreement for City of Petaluma Water Use Efficiency Program
12
C -1