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15-0804_MUNICIPAL WATER DISTRICT OF ORANGE COUNTY_Agenda Report_F16City of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: Eric Bauman, Assistant Utilities Director{~~ ~\<..­ Prepared by: Francie Kennedy, Water Conservation Coordinator\i' DATE: August4,2015 8/4/2015 F16 SUBJECT: Consideration of Approval of a Water Conservation Participation Agreement with Municipal Water District of Orange County; and Addendum No. 3 for Fiscal Year 2015-2016 Turf Removal Rebate Program and Spray-to-Drip Irrigation Rebate Program RECOMMENDATION: By motion, 1. Approve the ten (1 0) year Water Conservation Participation Agreement with Municipal Water District of Orange County; and, 2. Approve Addendum No. 3 for Fiscal Year 2015-2016 site inspections for the Turf Removal Rebate Program and Spray-to-Drip Irrigation Rebate Program as specified in sections 3B and 3C. 3. Authorize the City Manager or his/her designee to approve future Addenda. EXECUTIVE SUMMARY: The Metropolitan Water District of Southern California (MWD) provides funding for various incentives for water conservation measures. Many of these programs are administered by the Municipal Water District of Orange County (MWDOC) on behalf of its member agencies including the City of San Juan Capistrano. Additionally, MWDOC applies for and receives grant funds for water use efficiency programs implemented by MWDOC within the MWDOC service area. MWDOC also manages site inspections required for certain programs and facilitates supplemental funding provided by agencies in addition to base rebate amounts. These services are part of the MWDOC CHOICE program which the City participates in, and which was approved by the City Council for Fiscal Year 2015-2016 on Apri121, 2015. The purpose of the Water Conservation Participation Agreement is to create a master water conservation participation agreement between MWDOC and each participating member agency that combines all of the conservation programs and incentive programs City Council Agenda Report August 4, 2015 Pa e 2 of 4 into one agreement. In previous years, there have been annual individual agreements between the City and MWDOC based upon the program chosen for participation. The current agreements expired on June 30, 2015. This year MWDOC has proposed a ten (10) year master umbrella agreement for each agency participating in the MWDOC administered programs along with annual Addenda for select program participation (Attachment 1 ). DISCUSSION: The Water Conservation Participation Agreement will become effective upon execution and shall terminate on June 30, 2025. This agreement may be amended at any time by written mutual agreement of the parties or by Addenda issued by MWDOC. Either party may terminate for any reason upon thirty (30) days written notice. Funding for all of the programs within the Agreement and attached Addenda are conditioned upon the availability of funds. It is intended the Agreement Addenda will be completed by each Participant Agency on an annual basis (or more frequently, if needed) to indicate the Agency's specific participation (opt in, opt out, or provide additional funding) for each of the programs. The following explains the Addenda: • Addendum 1, parts A and B, lists the Metropolitan Incentive Levels for all residential and commercial devices. Addendum 1 is for reference and the lists are informational only. (Attachment 2) • Addendum 2, parts A, B, C, is for completion if an agency wants to provide supplemental funding for any device rebated by MWD via SoCal WaterSmart. (Attachment 3) For example, if an agency wanted to add funding to residential toilets for customers in its service area, the agency would complete the appropriate section of Addendum 2. San Juan Capistrano currently does not supplement any of these programs, and does not propose to participate at this time. • Addendum 3 is for completion by the City for participation in MWDOC's Smart Timer Rebate Program, Turf Removal Program, and Spray to Drip Irrigation Rebate Program. (Attachment 4) San Juan Capistrano participates in two of these programs, by funding inspections administered by MWDOC for the turf removal program and the new Spray to Drip Rebate Program. The following funding amounts are in the approved Fiscal Year 2015-2016 budget, and are included in this Addendum as not-to-exceed amounts: o Turf removal inspections $40,000 (for existing and pending reservations) o Spray to Drip irrigation rebate inspections $10,000 On July 9, 2015, MWD funding for turf rebates was exhausted and the program has ended. However on July 1, 2015, the total number of San Juan Capistrano sites in the City Council Agenda Report August 4, 2015 Pa e 3 of 4 queue for future inspection and incentive funding in Fiscal Year 2015-2016 included 20 commercial sites and 155 residences with an estimated cost of $36,851. Therefore, staff is recommending $40,000 for turf removal inspections to cover existing and pending reservations initiated prior to the program closure. Staff recommends approval of the master Water Conservation Participation Agreement along with the Fiscal Year 2015-2016 Addendum 3. Further, staff requests the City Council authorize the City Manager or his/her designee to approve future Addenda. FISCAL IMPACT: The ten (10) year agreement is intended to reduce the staff time required to handle annual agreements, and avoid gaps in the programs due to incomplete or late agreements. The City may choose to amend these agreements at any time. There is sufficient funding for these programs in the Fiscal Year 2015-2016 budget (60-94532- 66208). Future funding levels will be determined annually by the City, and staff expects to address this as part of the budget process. In the future, the City may choose to participate in rebate programs that it currently does not participate in, such as adding funding to existing rebates using penalty revenue received during the drought, which would have no net financial impact. ENVIRONMENTAL IMPACT: Not applicable. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: • On April 21, 2015, the Utilities Commission recommended that the City Council approve the Water Use Efficiency Program and the School Program, (CHOICE Programs), provided by MWDOC for City participation during Fiscal Year 2015- 2016. • On July 21, 2015, the Utilities Commission recommended that the City Council approve the ten (10) year agreement with MWDOC. PRIOR CITY COUNCIL REVIEW: • On April 21, 2015, the City Council approved the Water Use Efficiency Program and the School Program, (CHOICE Programs), provided by MWDOC for City participation during Fiscal Year 2015-2016. City Council Agenda Report August 4, 2015 Pa e 4 of 4 NOTIFICATION: Not applicable. A TT ACHMENT(S): Attachment 1 -MWDOC Water Conservation Participation Agreement Attachment 2 -MWDOC Addendum 1 Attachment 3 -MWDOC Addendum 2 Attachment 4 -MWDOC Addendum 3 Water Conservation Participation Agreement between the Municipal Water District of Orange County and City of San Juan Capistrano This Water Conservation Participation Agreement ("Agreement") is made between the tv1unicipai \Vater District of Orange County ("rv1\VDOC") an<fity of San Juan Capistrano(" Participant Agency"). MWDOC and Participant Agency may be collectively referred to as "Parties" and individually as "Party." Recitals A. The Metropolitan Water District of Southern California ("Metropolitan") provides incentive funding to residential, commercial, and industrial water users in its service area for a variety of water conservation activities, including, but not limited to, rebates for the purchase and installation of water-saving devices ("Metropolitan Base Incentives"). B. MWDOC is a member agency of Metropolitan and has agreements with Metropolitan that enable residential, commercial, and industrial water users in MWDOC's service area, and for the benefit ofMWDOC's member agencies, to participate in and take advantage of Metropolitan's Base Incentives. C. Participant Agency, as a MWDOC member agency or a direct Metropolitan member agency, may elect to participate in Metropolitan's program to replace non-conserving items within its service area. D. The Metropolitan Base Incentives amounts for each eligible device or program available to MWDOC and Metropolitan member agencies are listed in the attached Addendums I A and I B. It is expected that Metropolitan will establish funding for additional water conservation items and to change some or all of the existing funding rates throughout the term of this Agreement. Any such changes will be incorporated herein by amendment to Addendums I A and I B. E. Metropolitan and MWDOC each have fiscal responsibility to manage their individual budgets, and hence may have a need to limit availability of funds. F. MWDOC and Metropolitan member agencies may also choose to provide additional supplemental funding of their own to augment the Metropolitan Base Incentives. Based on the terms and conditions of this Agreement, MWDOC will facilitate supplemental funding for Participant Agency through the Metropolitan rebate contractor ("Rebate Contractor") or MWDOC directly. Metropolitan member agencies will coordinate any supplemental funding directly with Metropolitan. G. In addition to the Metropolitan Base Incentives, MWDOC has developed and arranged additional local, state, and federal grant funding ("Grant Funding") for eligible devices in a number of water conservation programs ("MWDOC Administered Programs") that MWDOC offers to Participant Agency and Metropolitan member agencies. This grant funding may be used to enhance the Metropolitan Base Incentives. Granting agencies Page 11 Attachment 1 include, but are not limited to, the Department of Water Resources and the United States Bureau of Reclamation. H. Participant Agency may also operate customized, local water conservation incentive progrmns in their respective service areas ("Participant Agency Administered Programs) and may have access to the Metropolitan Base Incentives and Grant Funding for such, subject to MWDOC and Metropolitan approval and the terms and conditions of this Agreement and any MWDOC and/or Metropolitan agreements. I. The purpose of this Agreement is to create a master water conservation participation agreement between MWDOC and Participant Agency that combines all of the conservation programs and incentives ("Programs") into one agreement. Addendums to this Agreement will be issued for changes involving Metropolitan approved items, MWDOC Board approved items, Grant Funding, adding and subtracting MWDOC Administered Programs and Participant Agency Administered Programs as identified in Section 2, and changes to incentive programs, including funding and incentive levels. NOW THEREFORE, in consideration of the promises and covenants hereinafter set forth, the Parties do agree as follows: Section I: Agreement Term and Administration 1.1 This Agreement will be effective on July I, 2015 or upon execution of this Agreement by all Parties, whichever is later, and shall terminate on June 30, 2025 ('Term"). Continuance of this Agreement will be subject to annual budget approval by MWDOC's Board of Directors. 1.2 This Agreement may be amended at any time by written mutual agreement of the Parties, or by Addendums issued by MWDOC as set forth in Recital!. 1.3 This Agreement may be tem1inated by either Party for any reason upon thirty (30) days written notice to the other Party. 1 .4 All Addendums are enforced for the duration of this Agreement unless the Addendums are amended or terminated by either Party. 1.5 In the event the Agreement is terminated early, Participant Agency is responsible for payment of any funding contributions required by this Agreement that that were initiated prior to the effective date of the termination. For purposes of this Agreement, an application is deemed initiated when an application has been received by Metropolitan's rebate vendor, EGIA, by MWDOC, or a reservation has been made within any of MWDOC's online application portals that is pursuant to any of the programs described within this Agreement and the attached Addendums. 1.6 Notwithstanding any other provision in this Agreement, funds for all of the programs described within this Agreement and the attached Addendums are conditioned upon the Page 12 availability of funds and MWDOC is under no obligation to provide funding for any of the programs if MWDOC determines, in its own discretion, that such funding is exhausted, reduced, eliminated, or unavailable from any funding source, for any reason. Section 2: Program Funding 2.1 Supplemental Funding 2.1.1 In addition to the Metropolitan Base Incentives, Participant Agency may provide additional funding to augment the Metropolitan Base Incentives amounts for those programs and devices that Participant Agency identifies, and in the amounts indicated, in the appropriate locations in Addendums 2A, 2B, and 2C ("Supplemental Funding"). The Supplemental Funding listed in Addendums 2A through 2C shall specify the amount of Supplemental Funding Participant Agency will provide per device or program, as well as the total maximum Supplemental Funding amount committed to each category of device or program. If the Participant Agency does not complete, sign, and return Addendums 2A through 2C to MWDOC, notwithstanding any other provision of this Agreement, the Participant Agency will not be bound by this Section or the provisions in Addendums 2A through 2C. In general, Supplemental Funding Addendums submitted by the l51h of a month will become effective the first of the following month. 2.1.2 If Participant Agency elects to provide Supplemental Funding or enhanced incentives under this Agreement for any device or program, Participant Agency is responsible for tracking the use of and the remaining availability of those funds. MWDOC will assist, in every way possible, but the ultimate responsibility for tracking all Pmiicipant Agency funding is the responsibility of Participant Agency. Participant Agency will ultimately be responsible for any overuse of Participant Agency Supplemental Funding. 2.1.3 Any requests for changes or revisions to Participant Agency's Supplemental Funding, including funding transfers between Programs, must be submitted by Participant Agency to MWDOC in the form of revised Addendum 2s listing the new funding amounts/limits. 2.1.4 The Participant Agency may elect to participate in the Supplemental Funding Program and be bound by the provisions of this Section 2.1, Sections 3, 5, 6, 7, and 8 of this Agreement, and Addendum 2A through 2C by having its authorized representative complete and sign Addendum 2A through 2C in the spaces provided. 2.2 MWDOC Administered Programs 2.2.2 Pmiicipant Agency may elect to take advantage of the MWDOC Administered Programs by having its authorized representative complete and sign Addendums 3A through 3C in the spaces provided. If Participant Agency completes and signs Addendums 3A through 3C, Participant Agency agrees to be bound by the provisions of this Section 2.2, Sections 3, 5, 6, 7, and 8 of this Agreement, and Addendums 3A through Page 13 3C. If the Participant Agency does not complete, sign, and return Addendurns 3A through 3C, notwithstanding any other provision of this Agreement, the Participant Agency will not be bound by this Section or the provisions in Addendums 3A through 3C. 2.3 Participant Agency Administered Programs 2.3.1 From time to time, funding may be made available for Participant Agency to operate a customized member agency administered local water conservation incentive program or programs ("Participant Agency Administered" "PA" or "MAA Program") in its service area and access the Metropolitan Base Incentives for such, subject to MWDOC approval of the program and the terms and conditions of this Agreement and Addendum 4. The Participant Agency Administered Program(s) and requirements in connection with it are described in more detail in Addendum 4. 2.3 .2 Upon receipt of approval of a Participant Agency Administered Program by MWDOC, Participant Agency is bound by the provisions of Sections 3, 5, 6, 7, and 8 of this Agreement and Addendum 4. 2.4 Exhaustion of Funding 2.4.1 In the event Participant Agency provided funding for any Program or device is exhausted, and Participant Agency does not elect to add additional funding or transfer available funding from another Program or device, MWDOC will discontinue offering the additional rebate funding for that Program or device in Participant Agency's service area. Notwithstanding any other provision in this Agreement, MWDOC may terminate this Agreement as it relates to Section 2 at any time without prior notice in the event that MWDOC determines that funding for any device or program on Addendums 2 through 4 or MWDOC Grant Funding is exhausted, reduced, eliminated, or unavailable from any funding source, for any reason. Section 3: Participant Agency Responsibility and Ownership 3.1 Participant Agency, at its sole discretion, may independently contract with its own agents under separate agreements for program administration and management for any Participant Agency Administered Program provided that doing so docs not compromise program performance, create or present a conflict of interest, or violate the terms of this Agreement. 3.2 Participant Agency and/or its agent shall provide all necessary services and materials for such Participant Agency Administered Programs including, but not limited to the following: program administration, promotion, marketing materials, data collection, and analysis, installation verification, and reporting. 3.3 All materials and supplies necessary to implement a Participant Agency Administered Program shall be the exclusive property of Participant Agency. MWDOC shall have no Page 14 ownership, right, title, security interest, or other interest in any Participant Agency Administered Program materials or supplies, nor any rights duties, or responsibilities, therefor. 3.4 Participant Agency is responsible for assuring that any Participant Agency Administered Program complies with all federal, state, and local requirements. 3.5 Participant Agency agrees to cooperate with MWDOC's data management activities related to assessing device saturation and program success. 3.6 As part of any Participant Agency Administered Program, Participant Agency shall use, maintain, and submit to MWDOC within the designated timeframe an electronic database, to be approved by MWDOC prior to use, for any conservation items installed, distributed, or rebated by Participant Agency or its agents to avoid duplicate distributions and to determine the saturation rate of items by the appropriate geographic delineation. 3. 7 Participant Agency is solely responsible for the performance of its staff or representatives in complying with the terms of this Agreement and for the proper allocation and appropriate use of funds provided by Metropolitan and/or MWDOC for the purpose of achieving water conservation savings under this Agreement. Section 4: MWDOC's Obligations 4.1 MWDOC will be responsive to Participant Agency for ensuring that timely reports on the Programs' results are prepared by MWDOC's staff. 4.2 MWDOC will develop a database of information regarding participation in the Programs and provide monthly electronic and/or written reports of activity to Participant Agency. 4.3 MWDOC will invoice Participant Agency for any Participant Agency funding obligations on a monthly basis for rebates issued in the previous month. 4.4 MWDOC does not guarantee any minimum number of rebates will be available for Participant Agency's service area. Section 5 Marketing. 5. I Participant Agency agrees to assist in the marketing of programs it participates in under this Agreement. With regard to Participant Agency Administered Programs, Participant Agency will be solely responsible for marketing its Participant Agency Administered Program to customers in its service area. Section 6: Installation Verification 6. I Participant Agency shall be responsible for conducting installation verifications of items installed, distributed, and/or rebated by Participant Agency under Participant Agency Page 15 Administered Programs, and/or for paying all costs associated with this verification. Installation verification measures for program devices must be designed to ensure that materials, installation verifications of eligible program devices, and services meet requirements established by Metropolitan, which requirements will be provided to Participant Agency by MWDOC. 6.2 Participant Agency may be responsible for conducting installation verifications of items installed, distributed, and/or rebated by Pmiicipant Agency or MWDOC under MWDOC Administered Programs, and/or for paying all costs associated with this verification. Installation verification measures for program devices must be designed to ensure that materials, installation verifications of eligible program devices, and services meet requirements established by Metropolitan, which requirements will be provided to Participant Agency by MWDOC. 6.3 MWDOC reserves the right to conduct installation verification of items within Participant Agency's service area. 6.4 Participant Agency acknowledges that any device receiving funding from Metropolitan may be subject to an installation verification to be performed by Metropolitan, or its agent(s), at Metropolitan's discretion. 6.5 Participant Agency shall promptly refund to MWDOC any amounts paid under any Participant Agency Administered Program or MWDOC Administered Program for installed or distributed devices in the event MWDOC or Metropolitan establishes via installation verification that the program devices were not installed. Section 7: Reporting and Invoicing 7.1 For any and all Supplemental Funding provided by Participant Agency and/or Participant Agency provided funding or inspection costs under the MWDOC Administered Programs pursuant to Section 2 of this Agreement, and as more particularly described in Addendums 2 and 3, MWDOC will invoice Participant Agency on a monthly basis for the cost of such funding, and Participant Agency must pay the full amount of such invoice within thitiy (30) days of receipt of any such invoice. 7.2 For any and all Participant Agency Administered Program(s), Participant Agency will invoice MWDOC on a monthly basis, by the I O'h of each month, for any approved funding and costs associated with the Participant Agency Administered Program(s) as indicated in and subject to the provisions of Addendum 4. MWDOC is under no responsibility to reimburse Participant Agency for any costs incurred by Participant Agency that are not approved by MWDOC consistent with the terms and conditions of this Agreement and Addendum 4. The invoice package shall include a fully completed, to the satisfaction of MWDOC, Excel customer/applicant spreadsheet showing program activity, and an invoice, signed by the General Manager or designee of Participant Agency, certifying the information provided as accurate. Participant Agency shall use the Excel customer/applicant spreadsheet and Invoice forms approved by MWDOC. Page 16 7.3 Participant Agency shall maintain all Participant Agency Administered Program information, including Pat1icipant Agency applications, water bills, and purchase receipts, for a period of seven years from the end date of this Agreement. 7.4 Payment of Participant Agency invoices shall be in the form of either a credit on MWDOC's water bill to Participant Agency or a check made payable to Participant Agency. Method of payment shall be at MWDOC's discretion. Section 8: Confidentiality 8.1 MWDOC agrees to maintain the confidentiality of Participant Agency's customer names, addresses, and other information gathered in connection with this Agreement. MWDOC will not cause or permit the disclosure of such information expect as necessary to carry out any of the MWDOC Administered or Participant Agency Administered Programs, or as required by law. To the extent that MWDOC contracts with third party contractors to carry out all or any portion of any of the Programs, MWDOC will require such contractors to maintain the confidentiality of such customer information. 8.2 Notwithstanding anything to the contrary in this Agreement, Pat1icipant Agency acknowledges and agrees that MWDOC may request and use historical water consumption data for purposes of satisfying any grant water use and water quality evaluation requirements of any of the Programs. Participant Agency also acknowledges and agrees that MWDOC may also request to use Program applicant infonnation, such as name, mailing address, site photos, and email address to market other water use efficiency programs to past applicants. A similar provision will be required of every individual applicant. Section 9. Indemnification. 9. J The parties agree that each Party shall be responsible for its own actions, and the actions of its officers, employees, and agents, in performing services under this Agreement. Except as provided in this Agreement and its Addendums, each Party agrees to indemnify and hold the other Party and its officers and agents harmless and agrees to defend the other Party against any claim or asserted liability arising out of its actions, either willful or negligent, or the actions of its officers, employees, and agents, in pertorming services pursuant to this Agreement. Such indemnity will include any losses relating to any claim made, whether or not a court action is filed, and will include attorney fees and administrative and overhead costs related to or arising out of such claim or asserted liability. 9.2 Participant Agency shall include the following language in its agreement with any consultant or contractor retained by Participant Agency to work on any of the Program" "(Consultant) agrees at is sole cost and expense to protect, indemnify, defend, and hold harmless Metropolitan, MWDOC, and their associated Boards of Directors, officers, representatives, agents and employees from and against any and all claims and liability Page 17 of any kind (including, but not limited to, any claims or liability for injury or death to any person, damage to property, natural resources or to the environment, or water quality problems) that arise out of or related to Participant Agency's approval, construction, operation, repair, or ownership of any Program. Such indemnity shall include all damages and losses related to any claim made, whether or not a court action is filed, and shall include attorneys' fees, administrative and overhead costs, engineering and consulting fees, and all other costs related to our arising out of such claim or asserted liability." Section I 0. Certification re Lobbying ( 43 CFR I 8) I 0.1 The undersigned hereby certifies on behalf of Participant Agency that no Federal appropriated funds have been paid or will be paid, by or on behalf of the Participant Agency, to any person for influencing or attempting to influence an officer or employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress in connection with a Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying" in accordance with its instructions. To the extent federal funds are involved, the Participant Agency shall require that the language of this certification be included in the awards documents for any sub-awards by the Participant Agency at all tiers (including sub-contracts, sub-grants, and contracts under grants, loans and cooperative agreements) and that sub-recipients, if any, shall certify accordingly. Section I I. Other Terms I l.l Any alteration or variation of the terms of this Agreement will not be valid unless made in writing and signed by both Parties. 11.2 This Agreement will inure to the benefit of and be binding upon the Parties and their respective successors. 11.3 The partial or total invalidity of one or more parts of this Agreement will not affect the intent or validity of this Agreement. 11.4 This agreement shall be deemed a contract made under the laws of the State of California, and for all purposes will be interpreted in accordance with such laws. The Parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California, and that the venue of any action brought hereunder will be in Orange County, California. Ill Ill Page 18 11.5 This Agreement constitutes the entire agreement between the Parties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement. MUNICIPAL WATER DISTRICT OF ORANGE COUNTY By: Date: ATTEST Robert J. Hunter General Manager Maria Morris, City Clerk Page 19 PARTICIPANT WATER AGENCY By: Derek Reeve Mayor City of San Juan Capistrano Date: Approved as to Form: Jeff Ballinger, City Attorney Date: Addendum 1A FY 15-16 Metropolitan Base Incentive list-Residential (Pg. 1 of 2) Regional Residential Program Metropolitan Incentive* 1 High Efficiency Clothes \Masher (HEC\"!) (Beginning Ju!y 1, 2015, just be CEE tier one or better) $85 2 High-Efficiency Toilet (HET) (single-family) $100 3 Rotating Nozzles' (For Pop-Up Spray Head Retrofits-Minimum 15 per home) $4 Weather Based Irrigation Controller (WBIC) ! 4 -WBIC Less than one irrigated acre $80 5 -WBIC One irrigated acre or larger $35 per station Soil Moisture Sensor System (SMSS) 6 -SMSS Less than one irrigated acre $80 7 -SMSS One irrigated acre or larger $35 per station 8 Rain Barrel $75 per barrel ! 9 Turf Removal (no max per home before 5/12/15) $2pers~ 10 Turf Removal (max $6,000 per home effective 5/12/15) $2 per sq. Other Incentives Metropolitan Eligible in MWD-Funded/Member Agency Administered Incentive Program Incentive* Residential Surveys -Single-Family Indoor Survey-Member agency provides on-site visit, written survey for the 11 customer listing recommendations on improvements, and review of findings report with I customer. Survey can be combined with either irrigation evaluation (w/o timer) or $12.50 irrigation evaluation (with timer), but not both. ! -Irrigation Evaluation (w/o timer)-Member agency provides the customer the findings of 12 the evaluation, makes recommendations on improvements to the irrigation system and $8 provides a watering schedule. 13 -Irrigation Evaluation (with timer)-Member agency provides the customer the findings of the evaluation and provides recommended irrigation schedule. $18 Customized Residential Projects Projects that result in water savings through customized site improvements. Metropolitan $195 ! 14 funding is limited to $195 per acre-foot of estimated water savings based on project life and up per acre-foot to one-half of the eligible project costs. Rotating Nozzles 1 15 For Pop-Up Spray Head Retrofit. Payment will be up to the cost of the device plus appropriate $4 per nozzle administrative costs, including third party costs billed to the agency. ' Other Incentives Metropolitan Grant-Funded/MWD-Matched Incentives* 16 Rotating Nozzles' (For Pop-Up Spray Head Retrofits) $4 per nozzle Weather Based Irrigation Controller (WBIC) 2 17 -WBIC Less than one irrigated acre $120 18 -WBIC One irrigated acre or larger $50 per station Attachment 2 Addendum 1A FY 15-16 Metropolitan Base Incentive list-Residential (Pg. 1 of 2) 19 Turf Removal' (max $6,000 per home) I $2 per sq.ft. '· Incentive incorporates $1 per nozzle in funds from United States Department of the Interior Grant Agreement i No.R12AP35351, Sprinkler Nozzle Incentive Program. ' Incentive incorporates funds for weather based controllers from the United States Department of the Interior Grant I Agreement No. R14AP00055. '· Incentive may incorporate $0.30 per square foot in funds from United States Department of the Interior Grant Agreement No. R14AP00073, California Friendly Turf Replacement Incentive Program -Phase 2 and United States Department of the Interior Grant Agreement No. R14AP00075, California Friendly Turf Replacement Incentive Program -Phase 2A. I* Incentives are subject to the following: • Effective May 12, 2015 • limited to the cost of the device when applicable • Paid on a first come, first served basis • Must be a Metropolitan-approved device • Subject to available funding Addendum 1B FY 15-16 Metropolitan Base Incentive List-Cll (Pg. 1 of 3) Regional Cll Program Metropolitan Incentive* 1 Plumbing Flow Control Vaive $5 per valve (Minimum 10 required) 2 laminar Flow Restrictors $10 per restrictor (Minimum 10 required) 3 Commercial High Efficiency Toilet (HET)-Tank Type $100 Rebates are for matching bowls & tanks. 4 Commercial High Efficiency Toilet (HET)-Flushometer $100 Rebates are for matching bowls and complete flushometer valves (valve "kits" are ineligible) 5 Multi-Family High Efficiency Toilet (HET) $100 6 Multi-Family High Efficiency Toilet (4-liter) $145 7 Zero Water Urinals (ZWU) $200 ZWU units must replace existing urinals flushing at 1.5 gpf or greater. Ultra low Water Urinal (UlWU) 8 Rebates are for matching bowls and flushometer valves (valve "kits" are ineligible) $200 Must flush at< 0.125 gpf and must replace existing urinals flushing at 1.5 gpf or greater. WBIC and CCIC: Upgrades to existing equipment that enable functionality as a WBIC/CC/C may qualify for incentives provided they meet program terms and conditions. 9 Weather-Based Irrigation Controller (WBIC) $35 per station 10 Central Computer Irrigation Controller (CCIC) $35 per station 11 Soil Moisture Sensor System (SMSS) $35 per station 12 large Rotary Nozzles $13 per set Minimum 8 sets {2 each) per site required. 13 Rotating Nozzles' $4 per nozzle For Pop-up Spray Heads Retrofits-Minimum 15 units per site. 14 In-Stem Flow Regulator $1 per regulator (Minimum 25 units per site) 15 pH-Cooling Tower Controller (pH-CTC) $1,750 16 Commercial Turf Removal (max $25,000 per property per fiscal year) $1 per sq ft. 17 Public Agency Turf Removal -Turf reserved before 5/12/15 (no max per property) $2 per sq. ft. -Turf reserved after 5/12/15 (max $50,000 per property per fiscal year) $2 per sq.ft.(<3k sf) >1 per sq.ft.(>3k sf) 18 19 20 21 22 23 24 25 26 27 28 Addendum 1B FY 15-16 Clllncentive list (Pg. 2 of 3) Cooling Tower Conductivity Controller (CTCC) Dry Vacuum Pump Maximum 2 Horsepower {HP) motor. Connectionless Food Steamers Ice Making Machines Other Incentives Eligible in MWD-Funded/Member Agency Administered Program large landscape Surveys Member Agency's landscape survey program shall contain the following elements for each survey site: 1) Irrigation system evaluation; 2) Development of a water budget and irrigation schedule; and 3) Survey report provided on-site to the recipient or customer. Incentives are limited to the full cost of the survey; no restriction on application for additional landscape device rebates. Project information data is required. Water Use Accountability Incentive Applies to professional landscape irrigation training and management. This incentive is available for a maximum of five years and up to one-half of project cost. Large residential (lot sizes one acre or more) and C/1/andscapes must be metered to be eligible for Water Use Accountability {WUA) funding, and new construction sites are ineligible. if a weather- based irrigation controller (WBIC) is installed on a site, that site is not eligible for WUA funding. Member agencies must report all direct and indirect program costs, project acreage and acre-feet usage (to the nearest one-tenth of a unit) to Metropolitan on a monthly basis, and shall certify that Metropolitan Professional California Friendly landscape training or equivalent was provided. Customized Projects Projects that save water through customized site improvements. Metropolitan's funding is limited to $195 per acre-foot of estimated water savings based on project life, and up to one-half of eligible project costs. Rotating Nozzles' For Pop-up Spray Heads Retrofits Payment will be up to the cost of the device plus appropriate administrative costs, including third party costs billed to the agency Other Incentives Grant-Funded/MWD-Matched Rotating Nozzles' For Pop-Up Spray Head Retrofits Weather-Based Irrigation Controller (WBIC) 2 Commercial Turf Removal (max $25,000 per property per fiscal year) 3 $625 $125 per 0.5 HP $485 per compartment $1,000 Metropolitan I Incentives* I $200 per acre $3.50 per acre/month $195 per acre-foot $4 per nozzle Metropolitan Incentives* $4 per nozzle $50 per station $1.30 per sq. ft. '· '· 3 Addendum 1B FY 15-16 Cll Incentive list (Pg. 3 of 3) Incentive incorporates $1 per nozzle in funds from United States Department of the Interior Grant Agreement No. R12AP35351, Sprinkler Nozzle Incentive Program. Incentive incorporates funds for weather based controllers from the United States Department of the Interior Grant Agreement No. R14AP00055. Incentive incorporates $0.30 per square foot in funds from United States Department of the Interior Grant Agreement No. R14AP00073, California Friendly Turf Replacement Incentive Program-Phase 2 and United States Department of the Interior Grant Agreement No. R14AP00075, California Friendly Turf Replacement Incentive Program-Phase 2A, while funds last. Additional Regional Programs Metropolitan Incentives* Public Agency landscape Program Up-front, enhanced incentives for public agencies to install water-efficient landscape devices. This program will run through June 30,2016. 29 Weather-Based or Central Computer Irrigation Controller, Soil Moisture Sensor System $55 per station 30 large Rotary Nozzles $13 per set Minimum 8 sets per application. 31 Rotating Nozzles $6 per nozzle For pop-up spray head retrofits. Minimum 15 nozzles per site. Targeted Fitness Center Incentive Program HETs, ULWUs and ZWUs: Must be WaterSense labeled devices, where available. This program will run through June 30, 2016. Incentive limited to cost of device plus installation. Rebates are for matching bowls & tanks or matching bowls and flushometer valves. 32 Commercial High Efficiency Toilet (HET)-Tank Type or Flushometer $300 I HET 33 Zero Water Urinals (ZWU) and Ultra low Water Urinal (ULWU) $500 I Urinal *incentives are subject to the following: • Effective May 12, 2015 • limited to the cost of the device when applicable • Paid on a first come, first served basis • Must be a Metropolitan-approved device • Subject to available funding Attachment 3 Informational note about this section: The City is not currently adding additional funding to the base rebate amounts. This section will be included but is currently inactive in the agreement. This section may be used in the future if the City chooses to add funding to any listed program. Attachment 3 includes the following elements: 1. "Addendum 2A FY 15-16 Residential Program Participant Agency Supplemental Funding Authorization" 2. "Addendum 28 FY 15-16 Cll Program Participant Agency Supplemental Funding Authorization" 3. "Addendum 2C FY 15-16 Participant Agency Supplemental Funding Authorization for Water Savings Incentive Program" Attachment 3 Addendum 2A FY 15-16 Residential Program Participant Agency Supplemental Funding Authorization (Pg. 1 of 1) Regional Incentive Program Metropolitan Participant Agency Total Incentive Incentive Incentive High Efficiency Clothes Washer (HECW) $85 $ $ High-Efficiency Toilets (HET) (Melded Rate) (Single-family) $100 $ $ Rotating Nozzles' $4 1$ $ Rain Barrels $75 $ $ 1/ncludes grant funding, when grant funds are available Check here 0 if the supplemental incentives are flat regardless of actual device cost Select one: Check here D if the supplemental incentives are limited to the actual device cost (Actual device cost is the retail price of the device excluding tax, shipping, labor or other charges) If Participant Agency has complex or more detailed requirements or wishes to stop their funding, please check this box, ::.1gn this form and attach a spreadsheet or other documentation showing funding details. Participant Agency Name Authorized Funding $ Add/Subtract Additional Funds' $ Total Authorized Funding $ Start Date: End Date: ':1 ",;o .~ ot the first form this fiscal year, indicate amount of funding being added or subtracted. This funding authorization is effective only for the period designated by the Participant Agency above, or until a new authorization is approved and implemented by Metropolitan's vendor. Each form submitted shall include the total authorization of the Agency for the specified time period. No funds will be carried over from prior forms. Supplemental funding forms received by MWDOC by the lS'h of a month will be sent to Metropolitan by the 20th of a month. Funding forms received by Metropolitan by the 20'h of a month shall become effective on the first day of the following month unless a later Start Date is specified. Incentives will not be applied retroactively. Participant Agency is obligated to pay supplemental funding for any on-line commitments made while this authorization is in effect. By signing, Participant Agency agrees ta these terms. Authorizing Signature General Manager /Designee Date MWDOC Date received: Approved by Use Only: Date sent to Metropolitan: Comments: Attachment 3 Addendum 2B FY 15-16 Cll Program Participant Agency Supplemental Funding Authorization (Pg. 1 of 2) Regional Incentive Program litan Participant Agency Incentive Incentive Plumbing Flow Control Valve $ 5 each $ laminar Flow Restrictors $ 10 per Restrictor $ Commercial HET-Tank Type $100 $ Commercial HET-Flushometer $100 $ Multi-Family HET $100 $ Multi-Family HET (4-Liter) $145 $ 1 Zero Water Urinals (ZWU) $200 $ Ultra low Water Urinal (ULWU) $200 $ large Rotary Nozzles $ 13 per Set $ Rotating Nozzles for Pop-up Spray Heads Retrofits' $ 4 per Nozzle $ In-Stem Flow Regulator $ 1 per Regulator $ pH-Cooling Tower Controller (pH-CTC) $1,750 $ Cooling Tower Conductivity Controller (CTCC) $ 625 $ Dry Vacuum Pump $ 125 per 0.5 HP $ Connectionless Food Steamers $ 485 per compartment $ Ice-Making Machines $1,000 $ Public Agency landscape WBIC, CCIC, and SMSS $ 55 per Station $ Public Agency landscape large Rotary Nozzles $ 13 Per Set $ Public Agency landscape Rotating Nozzles $ 6 per Nozzle $ Fitness Center HET Tank Type or Flushometer $300 per HET $ Fitness Center Urinals ZWU and ULWU $ 500 per Urinal $ I $ ~ ~ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ ' Addendum 2B FY 15-16 Cll Program Participant Agency Supplemental Funding Authorization (Pg. 2 of 2} Check here D if the supplemental incentives are flat regardless of actual device cost Select one: Check here D if the supplemental incentives are limited to the actual device cost (Actual device cost is the retail price of the device excluding tax, shipping, labor or other charges) D lf Participant Agency has complex or more detailed requirements, or wishes to stop their funding, please check this box, sign this form and attach a spreadsheet or other documentation showing funding details. Participant Agency Name Authorized Funding $ Add/Subtract Additional Funds 2 $ Total Authorized Funding $ Start Date: End Date: 1. Includes grant funding, when grant funds ore available. 2. if this is not the first form for this fiscal year, indicate amount of funding being added or subtracted This funding authorization is effective only for the period designated by the Participant Agency above, or until a new authorization is approved and implemented by Metropolitan's vendor. Each form submitted shall include the total authorization of the Agency for the specified time period. No funds will be carried over from prior forms. Supplemental funding forms received by MWDOC by the lS'h of a month will be sent to Metropolitan by the 20th of a month. Funding forms received by Metropolitan by the 20'h of a month shall become effective on the first day of the following month unless a later Start Date is specified. Incentives will not be applied retroactively. Participant Agency is obligated to pay supplemental funding for any on-line commitments made while this authorization is in effect. By signing, Participant Agency agrees to these terms. Participant ~ncy_ Authorizing Signature General Manager Date /Designee MWDOC Date received: Approved by Use Only: Date sent to Metropolitan, if applicable: Comments: Addendum 2C FY 15-16 Participant Agency Supplemental Funding Authorization for Water Savings Incentive Program Participant Agency Incentive (per 1,000 gal/yr) Supplement to Metropolitan's funding $ for Water Savings Incentive Program Participant Agency Total Authorized Funding* $ Start Date: End Date: *This authorization represents the Participant Agency's total funding for the period. This funding authorization is effective for only the period designated by the Participant Agency above or until a new authorization is approved and implemented by Metropolitan. Each form submitted shall include the total authorization of the Agency for the specified time period. No funds will be carried over from prior forms. Incentives will not be applied retroactively. Water Savings Incentive Program projects are typically multi-year projects with incentives paid in subsequent years. Participant Agency is required to authorize the project prior to MWDOC and Metropolitan's approvals. Participant Agency is obligated to pay supplemental funding for any projects MWDOC and Metropolitan approve while this authorization is in effect. MWDOC will invoice for the supplemental funding portion of incentives when incentives are paid to the customer. Participating Agency shall reimburse MWDOC for any supplemental funding that the Participant Agency fails to provide as represented above and that MWDOC and/or Metropolitan provided or became obligated to provide on the Participant Agency's behalf. The terms of this authorization may be modified only in writing by authorized representatives of Participant Agency and MWDOC. By signing, Participant Agency agrees to these terms. Authorizing Signature General Manager /Designee Date MWDOC I Date received: Approved by Use Only: Date sent to Metropolitan, if applicable: Comments: Addendum 3A FY 15-16 Smart Timer Rebate Program Participant Agency Funding Authorization With regard to the Smart Timer Rebate Program, Participant Agency is eligible for additional Grant Funding from MWDOC ("MWDOC Smart Timer Funding"), when funding is available, only if Participant Agency provides supplemental funding for the Smart Timer. Residential Smart Timers: Participant Agency agrees to provide funding for the Smart Timer Rebate Program in the amount specified in Table 1 below per residential weather based irrigation controller or soil moisture sensor system (Res Smart Timer). Funding will be provided on a per device basis up to the "Not to Exceed" funding limit: Table 1 Category Participant Agency Not to Exceed Funding Limit Funding Amount For Fiscal Year 2015-2016 Res Smart Timer $75 per Res Smart Timer $ Commercial Smart Timers: If Participant Agency elects to provide additional funding for commercial weather based irrigation controllers, central computer irrigation controller, or soil moisture sensor system (CII Smart Timer), Table 2 below shall list the Participant Agency's funding amount per Cll Smart Timer station. Cll Smart Timer rebates are calculated on the Cll Smart Timer's station capacity, and Participant Agency's funding amounts shall be in addition to the per station amount provided by Metropolitan. Table 2 Category Participant Agency Not to Exceed Funding Limit For Funding Amount Fiscal Year 2015-2016 Cll Smart Timer $ . per Station $ This funding authorization is effective only for the designated period or until a new authorization is received and approved by MWDOC. Each form submitted shall include the total authorization of the Agency for the specified time period. Supplemental funding forms received by MWDOC by the 15th of a month will be sent to Metropolitan by the 20th of a month. Funding forms received by Metropolitan by the 20th of a month shall become effective on the first day of the following month unless a later Start Date is specified. Incentives will not be applied retroactively. Participant Agency is obligated to pay supplemental funding for any on-line commitments made while this authorization is in effect. By signing, Participant Agency agrees to these terms. Participant Agency City of San Juan Capistrano Authorizing Signature General Manager /Designee Date Date received: Approved by Date sent to Metropolitan, if applicable: Attachment 4 Addendum 3B FY 15-16 Turf Removal Rebate Program Participant Agency Funding Authorization (Page 1 of 3) Site Inspection; Election by Participant. Participant Agency must either (1) conduct pre-and post-turf removal site inspections for all Program Applications submitted to MWDOC from within the Participant's service area, or (2) provide funding to MWDOC, as set forth below, for the cost of MWDOC's site installation inspection consultant, Mission Resource Conservation District (MRCD), to conduct both pre-and post-turf removal inspections. If Participant Agency elects to perform the pre-and post-turf removal inspections, Participant Agency shall be responsible for the activities described below: For pre-turf removal inspections: • Schedule and conduct the pre-turf removal inspection, • Complete the pre-turf removal work order, as provided by MWDOC, with the required data and site photographs • Establish that the applicant's proposed project and site are consistent with the intent of the Program. • Notify MWDOC If any site is being irrigated with recycled water. • Submit the completed work order and site photographs to MWDOC. • Recommend to approve or deny the application. If MWDOC staff agrees with the recommendation, it shall approve the application, designate the site as an eligible Program turf removal project, and issue a Notice to Proceed to the applicant, or reject the application and issue a Participation Denial Notice to the applicant. The final decision on a Notice to Proceed lies with MWDOC. For post-turf removal inspections: • Schedule and conduct the post-turf removal inspection • Complete the post-turf removal work order, as provided by MWDOC, with the required data, site photographs, and receipts • Establish that the applicant's completed project and site are consistent with the intent and guidelines of the Program, including the following. o The site's precise turf removal area in square feet that was removed. This shall be the basis for calculating the amount of each site's rebate, not to exceed initial pre-turf removal inspection measurements, and the total turf removal project cost. o The site's turf removal area does not include any live turf or turf-looking grasses. o The project area must include some plants. o The converted area's irrigation system, if any, is a low flow system (drip, bubblers, or low-precipitation high-efficiency rotating nozzles). If part of a lawn is converted, the sprinkler system must be properly modified to provide adequate coverage to the remaining lawn without spraying the converted area. o All exposed soil in the converted area is covered with a 2-3" layer of mulch, except in areas planted with creeping or rooting groundcovers. Addendum 3B FY 15-16 Turf Removal Rebate Program Participant Agency Funding Authorization {Page 2 of 3) o Converted area is permeable to air and water. Weed barriers must be permeable. Pavers must have sufficient spacing to allow water to permeate project area. Concrete, plastic sheeting or other impermeable surfaces do not qualify for incentives under the Program. o No invasive plant species are used. At the time of this Addendum, the residential turf removal inspection cost as charged to MWDOC by MRCD is $105 per residential inspection. The total cost for both pre and post-turf removal residential inspections is thus $210.00. The current commercial inspection cost as charged to MWDOC by MRCD is approximately $165.36 per inspection, based on an average of four ( 4) hours for a small commercial site at $37.84 per hour, plus $28 per hour for inspection verification administration. Again, two commercial inspections are required, for a total estimated cost of $330.72. Should the MRCD costs decrease or increase, MWDOC will pass these changes through to Participant Agency. By its initials below, City of San Juan Capistrano either: Name of Participant Agency (1) Conduct its own inspections: or (2) Provide funding to MWDOC to conduct inspections: Not to exceed funding amount to conduct Inspections hereby elects to Initials Here Initials Here $ 40,000 Participant has the option to provide supplemental funding to customers in its service area to further incentivize turf removal program participation. By completing Table 3 below, Participant Agency elects to provide supplemental funding for turf removal rebate incentives Table 3 -Turf Removal Supplemental Funding Not To Exceed Participant Program Funding for Fiscal Agency Funding Notes/Special Considerations Year 15-16 Amount per ' Square Foot Residential Turf $ Removal $ Cll Turf Removal $ Addendum 3B FY 15-16 Turf Removal Rebate Program Participant Agency Funding Authorization (Page 3 of 3) This funding authorization is effective only for the designated period or until a new authorization is received and approved by MWDOC. Each form submitted shall include the total authorization of the Agency for the specified time period. Supplemental funding forms received by MWDOC by the lS'h of a month will be sent to Metropolitan by the 20th of a month. Funding forms received by Metropolitan by the 20'h of a month shall become effective on the first day of the following month unless a later Start Date is specified. Incentives will not be applied retroactively. Participant Agency is obligated to pay supplemental funding for any on-line commitments made while this authorization is in effect. By signing, Participant Agency agrees to these terms. Participant Agency City of San Juan Capistrano Authorizing Signature General Manager /Designee Date Date received: Approved by Date sent to Metropolitan, if applicable: Addendum 3C FY 15-16 Spray to Drip Irrigation Rebate Program Participant Agency Funding Authorization (Page 1 of 2) Site Inspection; Election by Participant. Participant Agency must either ( 1) post-drip conversion site inspections for all Program Applications submitted to MWDOC from within the Participant's service area, or (2) provide funding to MWDOC, as set forth below, for the cost of MWDOC's site installation inspection consultant, Mission Resource Conservation District (MRCD), to conduct the post-drip conversion inspections. If Participant Agency elects to perform the post-drip conversion inspections, Participant Agency shall be responsible for the activities described below: For post-turf removal inspections: • Schedule and conduct the post-drip conversion inspection • Complete the post-drip conversion work order, as provided by MWDOC, with the required data, site photographs, and receipts • Establish that the applicant's completed project and site are consistent with the intent and guidelines of the Program, including the following. o Property type (residential/commercial) o Verified number of pressure regulation/filtration components o Verified project area in square footage. At the time of this Addendum, the residential post-drip conversion inspection cost as charged to MWDOC by MRCD is $105.00 per residential post-drip conversion inspection. The current commercial inspection cost as charged to MWDOC by MRCD is approximately $165.36 per inspection, based on an average offour (4) hours for a small commercial site at $37.84 per hour, plus $28 per hour for inspection verification administration. Should the MRCD costs decrease or increase, MWDOC will pass these changes through to Participant Agency. By its initials below, City of San Juan Capistrano either: Name of Participant Agency (1) Conduct its own inspections: or (2) Provide funding to MWDOC to conduct inspections: Not to exceed funding amount to conduct Inspections hereby elects to Initials Here Initials Here $ 10.000 Addendum 3C FY 15-16 Spray to Drip Irrigation Rebate Program Participant Agency Funding Authorization (Page 2 of 2) Participant has the option to provide supplemental funding to customers in its service area to further incentivize spray to drip conversion program participation. By completing Table 4 below, Participant Agency eiects to provide supplemental funding for spray to drip conversion rebate incentives Table 4-Spray to Drip Rebate Supplemental Funding Not To Exceed Participant Program Funding for Fiscal Agency Funding Notes/Special Considerations Amount per Year 15-16 Square Foot Residential Spray $ $ to Drip Cll Spray to Drip $ $ I This funding authorization is effective only for the designated period or until a new authorization is received and approved by MWDOC. Each form submitted shall include the total authorization of the Agency for the specified time period. Supplemental funding forms received by MWDOC by the 15th of a month will be sent to Metropolitan by the 20th of a month. Funding forms received by Metropolitan by the 20th of a month shall become effective on the first day of the following month unless a later Start Date is specified. Incentives will not be applied retroactively. Participant Agency is obligated to pay supplemental funding for any on-line commitments made while this authorization is in effect By signing, Participant Agency agrees to these terms. Participant Agency City of San Juan Capistrano Authorizing Signature General Manager /Designee Date Date received: Approved by Date sent to Metropolitan, if applicable: