ITEM 11-B
Council Meeting: April 24, 1990
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Adopt Resolution Setting the Plumbing
Fixture Rebate Program Conservation Incentive Fee
INTRODUCTION
This report requests that the City Council adopt a resolution
setting the conservation incentive fee which is to be charged to
property owners who elect not to participate in the BAYSAVER
plumbing fixture rebate program at $1.00/month for single family
homes and $0.65/month for multi-family units.
BACKGROUND
On July 25, 1989, the City Council approved the BAYSAVER plumbing
fixture rebate program and directed the City Attorney as part of
the program to prepare an ordinance establishing a conservation
incentive fee. On November 28, 1989, the Council adopted an
ordinance adding Section 7200B to the Santa Monica Municipal Code
which established the water conservation incentive fee and
authorized the fee to be set by Council resolution.
Implementation of the conservation incentive fee is essential to
the success of the plumbing fixture rebate program. The
conservation incentive fee will maximize participation rates as it
will:
- Reward those who participate (participants are exempt
from the fee);
- Increase the water and wastewater bill savings and
accelerate the payback period for rebate program
participants;
- Equitably finance 50% of BAYSAVER program costs as the
fee will only be collected for the duration of the five
year program; and
- Serve as an effective tool for promoting BAYSAVER rebate
program participation in subsequent program years.
Under the current proposal, the conservation incentive fee will be
imposed on the water bill of any residential customer who has not
installed a low flow showerhead and a ultra-low flow toilet by July
1, 1990. Upon installation and verification by inspection that
ultra-low flow fixtures have been installed, residential customers
will be relieved of the obligation to pay the conservation fee.
The fee will be removed within thirty days following the
inspection.
The fee is based not only on the number of dwelling units under
each water account, but also on the type of occupancy at each
account. Two rates have been developed, one for single family
households and one for multi-family households, due to the
difference in size of single family versus multi-family households.
Average occupancy rates are two people per apartment and three
people per single family home based on SCAG data and other
demographic base data for Santa Monica. Based on these occupancy
rates, the fee will amount to $1.00 per month for single family
homes, and $0.65 per month for each multi-family dwelling unit.
The fee will be adjusted, if necessary, depending on response to
the program. Staff recommends adoption of this fee for one year.
At the end of the year, actual instead of estimated response rates
to the program can be used to determine needed revisions to the
recommended fee amounts. As more residents participate in the
retrofit program, the fee charged non-participants should be
increased to maintain the same level of financial support for on-
going program costs and to create stronger incentives for increased
program participation.
BUDGET/FINANCIAL IMPACT
The Water Fund has absorbed a portion of the first 9 months program
cost, in the amount of $93,750. If the fee is not approved for
FY1990-91, it will be necessary for the Water Fund to continue to
absorb the costs of the program at a cost of approximately $327,000
per year. This subsidy will necessitate a general rate increase
to all water customers.
The conservation incentive fee will raise revenues in FY1990-91 in
the amount of $327,000. All revenues from the conservation
incentive fee will be received in Water Fund Revenue Account 25-
500-671-00000-0457-10000.
RECOMMENDATION
It is recommended that the City Council adopt the attached
resolution setting the conservation incentive fee at $1.00 for
single family homes and $0.65 for each multi-family dwelling unit.
Prepared by: Stan Scholl, Director of General Services
Craig Perkins, Administrative Services Manager
Atossa Soltani, Conservation Coordinator
RESOLUTION NO. ________
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AUTHORIZING A CONSERVATION INCENTIVE FEE FOR
THOSE WATER CUSTOMERS WHO DO NOT REPLACE EXISTING
PLUMBING FIXTURES WITH ULTRA LOW FLOW TOILETS AND LOW
FLOW SHOWERHEADS
WHEREAS, Section 7200B of the Santa Monica Municipal Code
provides that the City Council may impose a Conservation Incentive
fee by Resolution; and
WHEREAS, the proposed conservation incentive fee is an
essential component for successfully implementing a plumbing
fixture retrofit program; and
WHEREAS, the proposed incentive fee represents a strong
incentive to elicit the voluntary replacement of inefficient
plumbing fixtures,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. Effective July 1, 1990, residential water
customers who do not install approved models of ultra low flow
toilets (maximum 1.6 gallons per flush) and low flow showerheads
(maximum of 3 gallons per minute) will be charged a conservation
incentive fee on their water bill in the amount of One Dollar
($1.00) per month for single-family homes and sixty-five cents
($0.65) per month for each multi-family dwelling unit.
SECTION 2. Upon verification that a bathroom on the
property has been retrofitted with an approved ultra low flow
toilet and a low flow showerhead, or upon the termination of the
BAYSAVER Fixture Rebate Program by the City, whichever occurs
first, the conservation incentive fee will be removed from the
customer's water bill. The fee will be removed within thirty (30)
days following verification.
SECTION 3. Exemptions may be granted by the Director of
General Services only for those properties where it is determined
that:
1. A special handicapped toilet is used for which there is not
a low consumption equivalent;
2. A miniature or special-sized children's fixture is used for
which there is no low consumption equivalent; or
3. A substandard rough-in (less than 12 inches) exists and this
condition causes the payback of the cost of retrofit to be
greater than five years.
In order to be exempted from the conservation incentive fee due to
the reasons listed above, the property owner must employ low flow
showerheads (3 gallons per minute) and faucet aerators in all
interior plumbing fixtures and the property must be inspected by
the City to ensure that it is free of leaking plumbing fixtures
and that any irrigation system is properly adjusted.
SECTION 4. The City Clerk shall certify to the adoption
of this Resolution, and thenceforth and thereafter the same shall
be in full force and effect.
APPROVED AS TO FORM:
____________________
ROBERT M. MYERS
City Attorney