HomeMy WebLinkAboutMUNICIPAL WATER DISTRICT OF ORANGE COUNTY (MWDOC) (4) - 2012
p 18 2012
U PWA / 420 C2~ N-2012-113
Tom y
Paul M. Walters
City Manager
City of Santa Ana CNA IDA
Public Works Agency
220 S. Daisy Avenue, M85, P.O. Box 1988
Santa Ana, CA 92703
Subject: LETTER AGREEMENT REGARDING INTENT TO
PARTICIPATE IN MWDOC WATER USE EFFICIENCY
PROGRAMS
Dear Mr. Walters:
In fiscal year 2012-2013, the Municipal Water District of Orange County (MWDOC) will
change the manner in which many of its Water Use Efficiency (WUE) programs are offered
pursuant to a recent agreement between MWDOC and its member agencies.l MWDOC will
continue to welcome participation by the City of Santa Ana (City) in its WUE programs, and the
City will be given essentially the same access to WUE programs as MWDOC's member
agencies. The purpose of this letter agreement is to memorialize the City's intent to participate
in MWDOC's WUE programs and identify and authorize the respective obligations of the City
and MWDOC.
In general, WUE programs will be developed by MWDOC on a "pay-as-you-go" or
"pay-for-participation" basis. Where grant funding obtained by MWDOC for a particular
program provides for local matching funds or other local participation, MWDOC and the City
will need to enter into a separate agreement for that program. Currently MWDOC anticipates
that such agreements will provide for three or more years of participation. At the time of this
letter agreement, the following WUE programs require a separate participation and funding
agreement with MWDOC:
• "SmarTimer Rebate Program, with Additional Local Funding
Where program funding does not require local or match funding from the City and the
program is available throughout MWDOC's service area, with the ultimate decision to actively
participate being made by the end water user, no separate agreement with g Y h MWDOC is required
in addition to this letter agreement. Under these circumstances, and upon notice from the City
regarding programs it wishes to support in its service area, (1) MWDOC will provide assistance
to the City in the form of marketing materials and staff support, and (2) grant funding for WUE
programs will be made available to end water users within the City. At the time of this letter
agreement, the following WUE programs are available to City residents upon notice to MWDOC
by the City and without a separate participation and funding agreement with MWDOC:
• SmarTimer Rebate Program, without Additional Local Funding
"'Agreement between MWDOC and Its Member Agencies on Budget, Activities, Charges and Other
Issues."
• Turf Removal Program
• Hotel Program
• Industrial Program
• Water Smart Landscape Program (Aka - Landscape Performance Certification Program)
The City hereby gives notice for fiscal year 2012-2013 that all of the currently available
programs listed above should be provided within the City. If MWDOC introduces additional
WUE programs during the 2012-2013 fiscal year that similarly do not require a separate
participation and funding agreement with MWDOC, the City will also be included in these
programs without the requirement of additional notice. Costs for such additional programs may
be recovered by MWDOC as discussed below.
1. COST RECOVERY BY MWDOC
A. Except for WUE programs subject to a separate agreement between the
City and MWDOC, the City agrees to pay MWDOC for the City's proportionate share of
the cost of WUE programs covered by this letter agreement, including costs related to
materials, staff time, vendors, and other overhead, subject to the limitation below.
B. Invoices from MWDOC will be based on a proportionate share of
MWDOC's estimated program costs, including personnel and other overhead costs,
which will be assigned annually to the City during MWDOC's budget process. Invoices
will not be based on itemized costs incurred for services or materials provided to the City..
Costs due under this letter agreement shall not exceed $578 per year in fiscal year 2012-
2013, as shown in the attached spreadsheet. (See Attachment A.) An updated
Attachment A will be provided annually upon renewal of this letter agreement.
C. If additional WUE programs are added during the year, MWDOC reserves
the right to capture resulting program cost increases in the Attachment A generated for
the next fiscal year.
D. MWDOC shall invoice the City in July of each year based on the City's
Attachment A amount, and the City shall pay the full amount due within thirty (30) days
of receipt of the invoice. Any disputes regarding an invoice shall be sent to MWDOC
within 30-days of receipt. A reconciliation of actual program costs will be performed at
the end of the year during MWDOC's budget process and reflected in the Attachment A
for the following year.
2. TERM
A. This letter agreement shall become effective on July 1, 2012, and shall
continue for a period of one year. The parties may mutually agree in writing to renew this
letter agreement for an additional year, on or before the expiration date, for up to five
additional years.
B. If the City wishes to add or delete programs in conjunction with the annual
renewal of this letter agreement, notice of such addition or deletion must be received by
MWDOC prior to March 15tH
C. The City or MWDOC may terminate this letter agreement upon giving
thirty (30) days written notice to the other party.
D. In the event of termination, any amounts paid by the City in the year of
termination for costs that had not been incurred by MWDOC as of the date of termination
will be subject to reconciliation during MWDOC's budget process and credited or
refunded to the City, as MWDOC deems appropriate. Further, any actual costs incurred
by MWDOC as of the date of termination that exceed the Attachment A amount for the
year of termination shall be invoiced by MWDOC and paid by the City within thirty (30)
days.
3. INDEMNIFICATION
When separate agreements between the City and MWDOC are required, those
agreements will address indemnification obligations by the parties as appropriate to the
program. WE programs that target the end water user directly will require that
applicants sign a release and waiver of any claims against MWDOC or the City and,
where appropriate, indemnify MWDOC and the City against claims arising out of
applicant's participation in the program. To the extent that MWDOC or the City or their
respective staffs or consultants perform any activities in connection with the programs,
each agrees to indemnify and hold the other harmless from any and all liability, claims,
obligations, damages, and suits arising out of such activities.
4. NOTICE
All notices given pursuant to this letter agreement, including notices of
participation in a MWDOC WUE program, shall be given in writing by personal
delivery, express overnight delivery or U.S. mail, postage prepaid, and addressed as
follows:
Mr. Kevin P. Hunt, General Manager
Municipal Water District of Orange County
18700 Ward Street
Fountain Valley, CA 92708
City of Santa Ana
Public Works Agency
220 S. Daisy Avenue, M85 P.O. Box 1988
Santa Ana, CA 92703
Attn: Tom Dix
5. Authority and Governiniz Law
MWDOC and the City represent that the signatories are duly authorized to
execute this letter agreement. This letter agreement shall be deemed a contract made
under the laws of the State of California for all purposes.
MWDOC will monitor programs on an ongoing basis and reserves the right to expand,
modify or terminate programs based on availability of program funding, program results,
advances in technology, and other factors. Please contact the undersigned with questions about
this letter agreement or MWDOC's WUE programs.
MUNICIPAL WATER DISTRICT
OF ORANGE COUNTY
0A
44
Kevin P. Hunt
General Manager
SO AGREED:
CITY OF SANTA ANA
-Paul M. Walters
City Manager
ATTEST:
Maria D. Huizar
Clerk of the Council
RECOMMENDED FOR APPROVAL:
Raul Godinez, II
Executive Director - PWA
Approved as to Form:
"Laura Sheedy
Assistant City Attmey
MWDOC Water Use Efficiency Choice Program
Cost Allocations by Agency in FY 2012-13
Metropolitan MWDOC Vendor Total Outside Percentage Choice
By Retail Agencies Incentives [1] G.rant$ 121 Fees Funding Share Allocation
Brea $ 15,393 $ 2,565 $ 3,341 $ 21,298 0.8% $ 4,069
Buena Park $ 50,284 $ 52,764 $ 11,500 $ 114,548 4.1% $ 21,883
East Orange County Water District $ 2,539 $ 1,750 $ 486 $ 4,775 0.2% $ 912
El Toro Water District $ 24,041 $ 40,377 $ 3,312 $ 67,730 2.4% $ 12,939
Fountain Valley $ 40,754 $ 46,337 $ 9,774 $ 96,865- 3.4% $ 18,505
Garden Grove $ 83,123 $ 3,100 $ 8,879 $ 95,102 3.4% $ 18,168
Golden State Water Company $ 59,412 $ 24,521 $ 13,498 $ 97,431 3.5% $ 18,613
Huntington Beach $ 127,836 $ 13,114 $ 22,169 $ 163,118 5.8% $ 31,162
Irvine Ranch Water District $ 392,988 $ 99,507 $ 65,393 $ 557,888 19.8% $ 106,578
La Habra $ 21,664 $ 297 $ 3,439 $ 25,400 0.9% $ 4,852
La Palma $ 4,930 $ - $ 1,127 $ 6,057 0.2% $ 1,157
Laguna Beach County Water District $ 15,251. $ 48,133 $ 2,135 $ 65,519 2,3% $ 12,517
Mesa Water District $ 48,873 $ 70,843 $ 10,993 $ 130,710 4.6% $ 24,971
Moulton Niguel Water District $ 145,110 $ 46,743 $ 26,507 $ 218,360 7.7% $ 41,715
Newport Beach $ 21,041 $ 14,707 $ 3,843 $ 39,591 1.4% $ 7,563
Orange $ 47,470 $ 4,386 $ 10,411 $ 62,267 2.2% $ 11,895
Orange County Water District $ - $ - $ $ - 0.0% $ -
San Clemente $ 58,536 $ 177,549 $ 8,231 $ 244,315 8.7% $ 46,674
San Juan Capistrano $ 23,169 $ 13,202 $ 4,139 $ 40,510 IA% $ 7,739
Santa Margarita Water District $ 155,552 $ 1£33,720 $ 24,054 $ 363,326 12.9% $ 69,409
Seal Beach $ 5,610 $ - $ 1,427 $ 7,037 0.2% $ 1,344
Serrano Water District $ 2,840 $ 3,786 $ 510 $ 7,136 0.3% $ 1,363
South Coast Water District $ 66,010 $ 142,766 $ 6,315 $ 215,091 7.6% $ 41,091
Trabuco Canyon Water District $ 12,583 $ 10,392 $ 2,385 $ 25,360 0.9% $ 4,845
Tustin $ 14,846 $ 11,433 $ 3,506 $ 29,786 :1.1% $ 5,690
Westminster $ 27,572 $ 682 $ 6,460 $ 34;713 1.2% $ 6,632
Yorba Linda Water District $ 43,099 $ 6,406 $ 7,453 $ 56,958 2.0% $ 10,881
Anaheim $ - $ 12,687 $ $ 12,687 0.4% $ 2,424
Fullerton $ $ 13,006 $ $ 13,006 0.5% $ 2,485
Santa Ana $ - $ 3,028 $ - $ 3,028 0.1% $ 578
Orange County Total $ 1,510,526 $ 1,047,801 $ 261,287 $ 2,819,614 10R $ 538,654
[1] Incentive amounts for CY 2011 funded though Metropolitan's Conservation Credits Program. Programs include
Commercial, Residential, Hotel, Industrial, Landscape Certification, and SmartScape.
[2] Outside funding in CY 2011 through grants awarded to MWDOC by the California Department of Water Resources, US
Bureau of Reclamation, National Resources Conservation Service, and State Water Resources Control Board. Excludes
member agency contributions, and includes MWDOC budgeted contributions to Landscape Certification Program.
[3] Vendor fees in CY 2011 are adminstratieve processing costs paid for by Metropolitan or though MWDOC grants.
Adopted
Municipal Water District of Orange County August 30, 2012 Revised
Attachment A
::EzW5ftXq - wised 8/30/2012)
MWDOC Choice Services Program Budget
Cost Allocations by Agencies In FY 2012-13
Water Use School South Coastal Huntington Second Lower Total Choice
Program Budqet Efficiency Proaram . Ocean Desal Beach Desal Cross Feeder Program
Project Budget $ 571,384 $ 257,680 $ 137,546 $ 45,842 $ 50,000 $ 1,062,452
Prior Year Carrvover $ (32.730) $ (11,385) $ (137,546) $ (19,362) $ - $ (201,023)
Net Project Budget $ 5381654 $ 246,295 $ - 5 26,480 $ 50,000 $ 861,429
Water Use School South Coastal Huntington . Second Lower Total Choice
Retail Agencv Efficiency Program Ocean Desal Beach Desai Cross Feeder Program
Brea $ _ 4,069 $ 5,460 $ - $ - $ $ 9,529
Buena Park $ 21,883 $ 8,446 $ $ - $ - $ 30,329
East Orange County WD $ 912 $ 22 $ $ j,324 $ - . $ 2,258
El Toro WD $ 12,939 $ 8,089 $ $ 1,324 $ 5,000 $ 27,352
Fountain Valley $ 18,505 $ 4,734 $ $ 1,324 $ - $ 24,563
Garden Grove $ 18,168 $ 11,548 $ $ 1,324 $ - $ 31,040
Golden State Water Company $ 18,613 $ 9,126 $ $ 1,324 $ 5,000 $ 34,063
Huntington Beach $ 31,162 $ 19,783 $ - $ 1,324 $ $ 52,269
Irvine Ranch WD $ 106,578 $ - $ - $ 1,324 $ 5,000 $ 112,902
La Habra $ 4,852 $ 5,039 $ - $ - $ $ 9,891
La Palma $ 1,157 $ 1,351 $ - $ $ _ $ 2,508
Laguna Beach County WD $ 12,517 $ 1,039 $ 0 $ 1,324 $ 5,000 $ 19,880
Mesa WD $ 24,971 $ 24,692 $ - $ 1,324 $ - $ 50,987
Moulton Niguel WD $ 41,715 $ 11,678 $ 0 $ 1,324 $ 5,000 $ 59,717
Newport Beach $ 7,563 $ 1,885 $ - $ 1,324 $ - $ 10,772
Orange $ 11,895 $ 7,480 $ $ 1,324 $ - $ 20,699
Orange County WD $ $ - $ - $ 1,324 $ - $ 1,324
San Clemente $ 46,674 $ 2,891 $ 0 $ - $ 5,000 $ 54,565
San Juan Capistrano $ 7,739 $ 3,258 $ 0 $ - $ 5,000 $ 15,997
Santa Margarita WD $ 69,409 $ 13,649 $ - $ 1,324 $ 5,000 $ 89,382
Seal Beach $ 1,344 $ 2,084 $ $ 1,324 $ $ 4,752
Serrano WD $ 1,363 $ 1,442 $ - $ - $ - $ 2,805
South Coast WD $ 41,091 $ 4,238 $ 0 $ 1,324 $ 5,000 $ 51,653
Trabuco Canyon WD $ 4,845 $ 1,825 $ - $ 1,324 $ - $ 7,994
Tustin $ 5,690 $ 10,459 $ - $ - $ - $ 16,149
Westminster $ 6,632 $ 8,771 $ - $ 1,324 $ - $ 16,727
Yorba Linda WD $ 10,881 . $ 7,304 $ - $ = $ - $ 18,185
Anaheim $ 2,424 $ 30,000 $ - $ 1,324 $ 5,000 $ 38,748
Fullerton $ 2,485 $ 10,000 $ - $ $ - $ 12,485
Santa Ana $ 578 $ 30,000 $ - $ 1,324 $ - $ 31,902
Orange County Total $ 538:654 $ 246,293 $ 0 $ 26,480 $ 50,000 $861.427
Note: Totals may not foot due to rounding.
Municipal Water District of Orange County August 30, 2012