HomeMy WebLinkAboutStaff Report 3.D 05/21/2018Agenda Item #3.D
DATE: May 21, 2018
TO: HonorableMayor and Members of the City Council through City Manager
FROM:an o CE — Director, Public Works and Utilities
LQea r P.E. — Environmental Services Manager
SUBJECT: Resolution Authorizing the City Manager to Approve the First Amended
Memorandum of Understanding Regarding Sonoma -Marin Saving Water
Partnership
RECOMMENDATION
It is recommended that the City Council Adopt a Resolution Authorizing the City Manager to
Approve the First Amended Memorandum of Understanding Regarding Sonoma -Marin Saving
Water Partnership.
BACKGROUND
The Restructured Agreement for Water Supply (Restructured Agreement) with the Sonoma
County Water Agency (SCWA), to which Petaluma is a party, requires that Water Contractors
implement water conservation measures including regional and local projects. In the summer of
2005, staff from the Water Contractors, SCWA, and Marin Municipal Water District (MMWD)
began working in partnership to cost effectively implement water conservation programs. A
Memorandum of Understanding (MOU) was agreed to and on March 3, 2008, the SCWA Water
Advisory Committee (WAC) unanimously recommended approval of the 10 -year MOU. On
November 17, 2008, the Petaluma City Council approved Resolution No. 2008-214 N.C.S.
authorizing the City Manager to sign the MOU.
In 2017, a Revision Subcommittee was formed to develop recommendations for revising the
MOU for the next 10 -year period. On May 7, 2018, the WAC approved the First Amended MOU
to continue the efforts of the original MOU that will expire in June 2018.
DISCUSSION
The purpose of the original MOU was to determine annual budgets and expenditures by each
member for water conservation, identify recommended water conservation projects, and
maximize cost-effective water conservation by the members.. The First Amended MOU will
continue the regional water conservation efforts established by the original MOU as well as
recognize the commitment to reduce potable water demands to meet established targets. The
First Amended MOU includes the following changes of note from the original:
Section 4 — Commitment: replaced references to the CUWCC with its new name, the
California Water Efficiency Partnership (CalWEP), and removed references to
CUWCC Best Management Practice (BMP) implementation and reporting, as this is
no longer a requirement to be a member in good standing of CaIWEP.
Section 5 —New Signatories: added to streamline the process for adding new
signatories and to clarify the process for setting annual fees for new signatories.
Section 7 — Local Water Conservation Projects Funding: established to better
distinguish local project funding from regional project funding discussed in Section 6
— Regional Project Funding. Local project funding remains $15 million over 10
years. The amount to be budgeted and expended annually by each Water Contractor
and MMWD would be based on the prorated share of total water supplied for potable
distribution rather than basing commitments only on water deliveries from Agency.
The City's prorated share for local water conservation project funding is based on the average
water production for Petaluma in fiscal years 2015, 2016, and 2017 in comparison to the average
total water production by the Water Contractors and MMWD. The annual amount to be budgeted
and expended by individual agencies on local projects will be adjusted in fiscal years 2022 and
2025 using the same prorated basis to reflect the then current 3 -year average annual water
production. The updated funding mechanism established by the First Amended MOU will
require the City to budget and expend a minimum of $171,500 annually, compared to the City's
annual share of $242,150 from the original MOU, which the City has met or exceeded since the
inception of the original MOU.
The City has benefited from the Sonoma -Marin Saving Water Partnership by participating in
regional programs including landscape, residential, commercial, and K-12 educational programs.
Regional collaboration has assisted the City in complying with State goals and mandates such as
the 20 x 2020 goal and the 2015 updated Model Water Efficient Ordinance. The First Amended
MOU will allow Petaluma to continue participation in cost-effective regional programs as a part
of the City's existing water conservation program including support of efficient irrigation
practices, incentives for purchase and use of water efficient fixtures and appliances, commercial
incentives, commitment of City staff resources for program implementation, and collection and
review of water conservation data and information.
The First Amended Memorandum of Understanding Regarding the Sonoma -Marin Saving Water
Partnership represents a strong commitment to water conservation by water agencies in Sonoma
and Marin Counties. It is recommended that the City Council adopt a resolution authorizing the
City Manager to approve the First Amended MOU.
FINANCIAL IMPACTS
By signing the MOU, the City agrees to budget and expend at least $171,500 annually on water
conservation from July 1, 2018 through June 30, 2028. The City's FY 17/18 water conservation
budget is $705,887, of which $420,000 is for water conservation program costs such as those
addressed by the MOU, therefore the proposed action is anticipated in the proposed FY 18/19
Budget.
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ATTACHMENTS
1. Resolution
2. First Amended Memorandum of Understanding Regarding Sonoma -Marin Saving Water
Partnership (Exhibit A)
Attachment 1
RESOLUTION AUTHORIZING THE CITY MANAGER TO APPROVE THE
FIRST AMENDED MEMORANDUM OF UNDERSTANDING REGARDING SONOMA-
MARIN SAVING WATER PARTNERSHIP
WHEREAS, the City of Petaluma Water Demand and Supply Analysis, developed in
support of the 2025 General Plan, recommended a cost effective water conservation program that
met sustained water offset requirements; and
WHEREAS, the City of Petaluma's water conservation program is designed to offset
potable water demand and improve the water use efficiency of its customers by offering
innovative conservation programs; and
WHEREAS, the City of Petaluma operates and maintains an extensive water supply,
storage and distribution system, whose primary source of water is wholesale water purchased
from the Sonoma County Water Agency (Agency); and
WHEREAS, the Agency operates and maintains a water supply transmission system
authorized by the Restructured Agreement for Water Supply (Restructured Agreement) between
and among the Agency and Water Contractors in Sonoma and Marin Counties; and
WHEREAS, the Restructured Agreement requires Water Contractors to implement
certain water conservation projects; and
WHEREAS, staff from the Agency and Water Contractors worked together to develop
the regional Memorandum of Understanding Regarding Sonoma -Marin Water Saving
Partnership (MOU) to more cost-effectively implement required water conservation projects and
to identify and develop new regional water conservation programs; and
WHEREAS, on March 3, 2008, the Water Advisory Committee (WAC) approved the
MOU and recommended that each Water Contractor adopt the Original MOU; and
WHEREAS, the MOU expires June 30, 2018; and
WHEREAS, staff from the Agency and Water Contractors formed the MOU Revision
Subcommittee to work together to develop the First Amended Memorandum of Understanding
Regarding Sonoma -Marin Saving Water Partnership (First Amended MOU) to continue the
collaboration for another 10 -year period; and
WHEREAS, on May 7, 2018, the WAC unanimously approved the First Amended
MOU; and
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WHEREAS, the requirements of the MOU are consistent with Petaluma's water
conservation program, including support of efficient irrigation practices, incentives for purchase
and use of water efficient fixtures and appliances, commercial incentives, commitment of City
staff resources for program implementation, and collection and review of water conservation
data and information.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby authorizes the City Manager to Approve the First Amended Memorandum of
Understanding Regarding the Sonoma -Marin Saving Water Partnership.
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Attachment 2
First Amended
Memorandum of Understanding
Regarding
Sonoma -Marin Saving Water Partnership
SECTION 1 — RECITALS
(a) The original Memorandum of Understanding ("Original (MOU")) was adopted on
December 14, 2010 by and between the following public agencies: Sonoma County Water
Agency (Agency), City of Cotati (Cotati), City of Petaluma (Petaluma), City of Rohnert Park
(Rohnert Park), City of Santa Rosa (Santa Rosa), City of Sonoma (Sonoma), North Marin Water
District, (NMWD), Valley of the Moon Water District (VOMWD), Marin Municipal Water District
(MMWD), and Town of Windsor (Windsor) (collectively, the "Parties"), and expires as of
[DATE].).
(b) The Original MOU established the Sonoma -Marin Saving Water Partnership
(SMSWP).
(c) The Sonoma County Water Agency ("Agency") was created by California state
legislation (Statutes of 1949, Chapter 994 as amended). The Agency operates and maintains a
water supply and transmission system authorized by the Restructured Agreement for Water
Supply (the "Restructured Agreement"), dated June 23, 2006, which is incorporated by
reference herein, between and among the Agency and the following eight (8) "Water
Contractors": Cotati, Petaluma, Rohnert Park, Santa Rosa, Sonoma, Windsor, NMWD,
VOMWD, by means of which water is furnished to the parties thereto.
(d) The Agency furnishes water to MMWD pursuant to that certain Fourth Amended
Off-peak Water Supply Agreement, and that certain Agreement for Sale of Water Between the
Sonoma County Water Agency and Marin Municipal Water District, both of which were last
amended by the Renewal of the Third Amended Off-peak Water Supply Agreement and
rel
Agreement for Sale of Water Between the Sonoma County Water Agency and Marin Municipal
Water District dated July 16, 2015 (collectively, the "2015 MMWD Agreements").
(e) The Restructured Agreement authorizes the Agency to undertake or fund any
cost effective Water Conservation Project that has been approved by the Water Advisory
Committee ("WAC").The Parties recognize that establishing common water conservation
projects on a regional basis and applicable across the political and jurisdictional boundaries of
each Party ("Regional Water Conservation Projects") may be a means of cost- effectively
conserving more water than would otherwise be conserved on an individual agency -by -agency
basis.
(f) The Restructured Agreement, at Section 1.12, sets forth the Water Conservation
Requirements that the Water Contractors must implement and encourages said parties to
implement Water Conservation Projects ("Local Water Conservation Projects") that go beyond
those requirements.
(g) The Restructured Agreement establishes a Water Conservation Sub -Charge to
be deposited in a Water Conservation Fund created by the Agency. The Water Conservation
Fund shall be used only to pay or partially pay for the cost of Water Conservation Projects. The
aggregate amount of money to be received by the Agency from the Water Conservation Sub -
Charge for each fiscal year shall be sufficient to cover the Agency's estimate of the total cost of
all Regional Water Conservation Projects for such fiscal year.
(h) The WAC approved Fifteen Million Dollars ($15,000,000) for implementing Water
Conservation Projects pursuant to the Water Conservation Plan dated June 29, 1998 over a
ten-year period commencing with Fiscal Year 1997-98, and an additional Fifteen Million Dollars
($15,000,000) pursuant to the Original MOU over a ten-year period commencing with Fiscal
Year 2007-2008.
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(i) The Parties further recognize that the Restructured Agreement establishes a
Water Conservation Subcommittee (the "Subcommittee") of the Technical Advisory Committee
("TAC') to the WAC to make recommendations with respect to Water Conservation
Requirements pursuant to the Restructured Agreement.
Q) All Parties to this First Amended MOU will be granted representation on the
Subcommittee.
(k) This First Amended MOU shall be effective as of [DATE], the date this First
Amended MOU is executed by six (6) of the parties (the "Effective Date"), and supersedes all
previous agreements with respect to the subject matter hereof.
SECTION 2 - DEFINITIONS
Undefined capitalized terms used in this First Amended MOU shall have the meaning
ascribed to them in Section 1.2 of the Restructured Agreement.
SECTION 3 — PURPOSE
The purpose of this First Amended MOU is to determine the amounts to be budgeted
and expended by each Party for water conservation, allow new parties to join the Subcommittee
to make recommendations on Regional Water Conservation Projects for consideration by the
TAC, and to maximize cost-effective water conservation by the Parties in Sonoma and Marin
Counties. This First Amended MOU recognizes the commitment to reduce potable water
demands to meet or exceed the targets established by the Parties or the state.
SECTION 4 - COMMITMENT
(a) Each Party, except the Agency, commits to do all of the following:
(1) Remain as a member in good standing of the California Water Efficiency
Partnership ("Cal-WEP"), and implement or use best efforts to secure the
implementation of any water conservation requirements that may be added as terms or
conditions of the Agency's appropriative water rights permits or license, or with which the
Agency must comply under compulsion of regulation or law. The Parties shall require
metered billing of all customer accounts they serve.
(2) Implement various water conservation measures, as may be appropriate
for the particular Party, that provide regional benefits and/or that may exceed the targets
established from time to time by the Parties or the state.
(3) Designate a staff member responsible for: (i) coordinating interaction
between that Party's management and council/board and the Agency staff; and (ii)
represent the Party on the Subcommittee to propose any Local or Regional Water
Conservation Project that will increase water conservation amounts or efficiency,
including water conservation related tasks as directed by the WAC such as regional
collaboration of water shortage contingency plans, regional outreach and messaging, or
specific initiatives for regional benefit in the Sonoma -Marin area.
(4) Provide customer service support and data collection for Agency staff
administering Regional Water Conservation Projects.
(5) Provide financial data support and cost accounting data for the Agency
and the Party's staff administering the Regional Water Conservation Projects or Party -
specific Local Water Conservation Projects.
(6) Provide staff support to review new development plans and construction
for consistency with regional water conservation recommendations of the Subcommittee
and, when requested, make said data information available to the Agency staff
administering the Regional Water Conservation Projects.
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(7) Acknowledge that in coordination with the Subcommittee, the TAC will
elect a TAC member or designee to represent the Parties as their spokesperson for
water conservation and water efficiency policy.
(b) The Agency is committed to participate in Regional Water Conservation Projects
as defined herein, by doing all of the following, without limitation:
(1) Remain as a member in good standing of Cal-WEP, by implementing or
using best efforts to secure the implementation of any water conservation requirements
that may be added as terms or conditions of the Agency's appropriative water rights
permits or license, or with which the Agency must comply under compulsion of
regulation or law. The Agency shall require metered billing of all customer accounts it
serves.
(2) Upon request of the other Parties, prepare and administer Funding and
Administration Agreements to provide staff support to carry out Local Water
Conservation Projects.
(3) Administer Regional Water Conservation Projects including, but not
limited to, the 2016 Regional Water Conservation Projects listed in Exhibit A attached
hereto and incorporated by reference herein.
(4) Compile necessary data and, in conjunction with the other Parties,
publish an annual report for the Parties detailing water conserved compared to plan and
based on best available techniques and industry standards.
(5) Pursue the addition of new parties to this First Amended MOU, including
but not limited to water suppliers along the upper Russian River, stormwater utilities, and
Groundwater Sustainability Agencies.
(6) Coordinate periodic information sharing meetings among the Parties.
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(7) Pursue grants that will benefit the Parties in implementing Water
Conservation Projects.
(8) In collaboration with the other Parties, prepare a strategic plan to promote
long term goals for the implementation of water conservation programs.
SECTION 5 — NEW PARTIES
Any public water system, stormwater utility, Groundwater Sustainability Agency, or local
or regional public entity operating along the upper Russian River or public entity that receives
water from the Russian River Watershed is eligible to become a party.
Upon approval of the TAC, based on a recommendation by the Subcommittee, an
eligible agency may become a party by:
(a) Paying an annual Water Conservation Fund fee to the Agency, for Regional Water
Conservation Projects, upon joining. The annual Water Conservation Fund fee for
each new party shall be based on either the methodology established in Section 6
(Regional Water Conservation Projects Funding) hereof, or a recommendation of the
Subcommittee that is approved by the TAC; and
(b) Agreeing to budget and expend funding for Local Water Conservation Projects based
on either the established methodology in Section 7 (Local Water Conservation
Project Funding) hereof, or a recommendation of the Subcommittee that is approved
by the TAC; and
(c) Executing this First Amended MOU and thereby agreeing to be subject to all
provisions herein, including, but not limited to, completing and attaching the form set
forth as Exhibit B to specify the amount to be contributed to the Water Conservation
Fund and the amount to be budgeted and expended for Local Water Projects.
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All new parties will be granted representation on the Subcommittee and will be eligible to
participate in the Regional Water Conservation Projects. If annual fees are not paid to the
Agency by March 30 of each year, a party's membership in the SMSWP shall be terminated.
SECTION 6 — REGIONAL WATER CONSERVATION PROJECTS FUNDING
Funding for the SMSWP shall be from the Agency Water Conservation Fund as
contributed to by the Water Contractors and MMWD pursuant to the Restructured Agreement.
For Water Contractors the Agency shall calculate and collect, as a part of the Operations and
Maintenance charge, a Water Conservation Sub -Charge, which monies shall be deposited in
the Water Conservation Fund. For MMWD and Agency Customers, not party to the
Restructured Agreement, an equivalent amount shall be included as a component of the
Operation and Maintenance Charge and shall be deposited in the Water Conservation Fund.
The Parties that are not Customers of the Agency shall annually fund Regional Water
Conservation Projects in an amount recommended by the Subcommittee and approved by the
TAC, which funds shall be deposited in the Water Conservation Fund.
The aggregate amount of money to be received by the Agency for each Fiscal Year and
deposited to the Water Conservation Fund shall be sufficient to cover the Agency's estimate of
the total cost of all Regional Water Conservation Projects for such Fiscal Year.
SECTION 7- LOCAL WATER CONSERVATION PROJECTS FUNDING
In addition to contributions to the Water Conservation Fund noted in Section 6 herein,
from July 1, 2018 through June 30, 2028, a total of Fifteen Million Dollars ($15,000,000) shall be
budgeted and expended by the Water Contractors and MMWD, collectively, to implement Local
Water Conservation Projects to achieve the quantifiable water savings. The amount to be
internally budgeted and expended annually by each Water Contractor and MMWD for Local
Water Conservation Projects (Annualized Amount) shall be budgeted and expended over the
next ten (10) years to support Local Water Conservation Projects benefiting the Water
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Contractors and MMWD. The Annualized Amount to be budgeted and expended by each Water
Contractor and MMWD shall be based upon the prorated share of three- (3) year average
annual total water supplied for potable distribution, including SCWA deliveries and potable water
production by each Water Contractor and MMWD. The Annualized Amount to be budgeted shall
be as follows: Cotati, Seventeen Thousand Five Hundred Dollars ($17,500), (1.16%);
Petaluma, One Hundred Seventy One Thousand Five Hundred Dollars ($171,500), (11.44%);
Rohnert Park, Ninety -Four Thousand Three Hundred Dollars ($94,300), (6.28%); Santa Rosa,
Three Hundred Seventy Four Thousand Four Hundred Dollars ($374,400), (24.96%); Sonoma,
Thirty Nine Thousand Eight Hundred Dollars ($39,800), (2.66%); North Marin Water District,
One Hundred Sixty Eight Thousand Dollars ($168,000), (11.20%); Valley of the Moon Water
District, Fifty Three Thousand Four Hundred Dollars ($53,400), (3.56%); Windsor, Sixty Eight
Thousand Six Hundred Dollars ($68,600), (4.58%) and Marin Municipal Water District, Five
Hundred Twelve Thousand Four Hundred Dollars ($512,400), (34.16%); based upon total
annual water production in fiscal year 2015, 2016 and 2017. The above Annualized Amounts
shall be adjusted in fiscal years 2022 and 2025 on the same prorated basis noted above to
reflect the then -current three- (3) year average annual total water production. The addition of
new parties will not alter the Annualized Amounts nor the cumulative total amount to be
budgeted and expended by the Water Contractors and MMWD for Local Water Conservation
Projects.
To support Local Water Conservation Projects, new parties to this First Amended MOU
shall budget and expend an Annualized Amount of at least 175% of their Water Conservation
Fund fee.
Revenue from the Water Conservation Sub -Charge collected from Windsor by the
Agency for all water diverted by Windsor directly from the Russian River using its own facilities,
whether under Windsor's water rights or Agency's water rights, shall be placed in a separate
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account by the Agency and made available to Windsor as additional funding for Water
Conservation Projects.
SECTION 8 - WAIVER OF RIGHTS
By signing this MOU, the Parties do not waive or relinquish any legal or equitable right
that they might otherwise have with respect to any of the actions, activities, or obligations
contemplated by the Restructured Agreement, except as expressly provided herein.
SECTION 9 - AMENDMENT OF FIRST AMENDED MOU
Amendments, revisions or modifications to this First Amended MOU shall be in writing
and shall be executed by all Parties hereto. The addition of new parties to the MOU pursuant to
Section 5 shall not be construed as an amendment requiring any further approval or execution
of any of the other Parties.
SECTION 10 - THIRD PARTY CLAIMS
It is not the intent of the Parties to this First Amended MOU to create any third -party
beneficiaries. Any failure to perform under the terms of this First Amended MOU shall not
create any claim or right by any individual or entity not a party to this First Amended MOU.
SECTION 11 - ENTIRE AGREEMENT
This writing is intended both as the final expression of agreement between and among
the Parties hereto with respect to the included terms and as a complete and exclusive statement
of the terms of the First Amended MOU, pursuant to California Civil Code §1896.
SECTION 12 - RELATION TO RESTRUCTURED AGREEMENT AND MMWD AGREEMENTS
The Parties understand and agree that this First Amended MOU supplements the
Restructured Agreement and the MMWD Agreements. The Parties agree that in the event of an
inconsistency between this First Amended MOU and the Restructured Agreement (or, for the
Agency and MMWD, between this First Amended MOU and the MMWD Agreements), the
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provisions of the Restructured Agreement (or, for the Agency and MMWD, the MMWD
Agreements) shall control.
SECTION 13 - TERM
The First Amended Memorandum of Understanding Regarding Sonoma -Marin Saving
Water Partnership shall become effective upon the signature of six (6) of the Parties and shall
remain in effect until June 30, 2028, unless extended or terminated earlier. Other of the Parties
may sign on as of or after the effective date.
SECTION 14 — COUNTERPART SIGNATURES
This First Amended MOU may be executed in counterparts, and each executed counterpart
shall have the same force and effect as an original instrument and as if all of the Parties to the
aggregate counterparts had signed the same instrument.
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SONOMA COUNTY WATER AGENCY
By:
Chair, Board of Directors
ATTEST:
Clerk, Board of Directors
Date:
CITY OF COTATI
By: Date:
Mayor
ATTEST:
City Clerk
CITY OF PETALUMA
By:
Mayor
ATTEST:
City Clerk
CITY OF ROHNERT PARK
By:
Mayor
ATTEST:
City Clerk
Date:
Date:
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CITY OF SANTA ROSA
By:
Mayor
ATTEST:
City Clerk
Date:
CITY OF SONOMA
By: Date:
City Manager
ATTEST:
City Clerk
NORTH MARIN WATER DISTRICT
By: Date:
President
ATTEST:
Secretary
VALLEY OF THE MOON WATER DISTRICT
By: Date:
President
ATTEST:
Secretary
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MARIN MUNICIPAL WATER DISTRICT
By: Date:
President
ATTEST:
Secretary
TOWN OF WINDSOR
By: Date:
Mayor
City Manager
ATTEST:
Town Clerk
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Exhibit A
2016 Regional Water Conservation Projects
• Regional Multi -Media Outreach Campaign
• Partnership website promotion
• Water Education materials available for local schools
• Sonoma County Green Business Program
• Qualified Water Efficient Landscaper (English and Spanish training, including graywater
training)
• Annual Eco -Friendly Garden Tour
• Russian River/ Bay Friendly Landscaping
• Water Smart Plant labels in local nurseries
• Daily Acts Community Resilience Challenge
• Master Gardener's Garden Sense Program
• Representation at the Sonoma County Fair
• Green Car Wash Certification
• Legislative Tracking
• Water Wise Gardening website for Sonoma and Marin counties
• Water Smart Plant Cards
• Do -It -Yourself Energy and Water Savings Toolkit
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Exhibit B
Contribution Amount Form
for New, non -Water Agency Customer Signatory
(to be completed and attached to the First Amended MOU)
Regional Water Conservation Projects Funding
[Organization Name] shall pay an annual Water Conservation Fund fee to fund Regional Water
Conservation Projects in the amount of
per the recommendation by
the Subcommittee and approved by the TAC, which amount shall be deposited in the Water
Conservation Fund.
Local Water Conservation Project Funding
[Organization Name] shall internally budget and expend at least 175% of their Water
Conservation Fund fee as their Annualized Amount to support Local Water Conservation
Projects or an amount recommended recommendation by the Subcommittee and approved by
the TAC equivalent to
For [Organization Name]
M
Name:
Title:
Date:
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