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Home My WebLink About18 - Smart Controller Installation & Services ProgramCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 18 October 24, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Robert Stein, P.E. 949 -644 -3322 or rstein @city.newport- beach.ca.us SUBJECT: SMART CONTROLLER INSTALLATION AND SERVICES PROGRAM RECOMMENDATION: 1. Approve a Budget Amendment appropriating $300,000 to Account No. 7255 - 05100969 for the Weather Based Irrigation Controller Program and increase revenue estimates by $300,000 representing the CALFED grant award. 2. Approve Budget Amendment appropriating $288,000 to Account No. 7251 - 05100968 for the Weather Based Irrigation Controller Program and increase revenue estimates by $288,000 representing rebate funding from Municipal . Water District of Orange County ( MWDOC). 3. Authorize expenditures of $366,500 from CALFED grant funds and MWDOC SmarTimer rebate program funds to install 400 weather -based irrigation controllers in Corona del Mar and Newport Coast by Hydropoint Data Systems. DISCUSSION: In order to protect the coastal canyons and the sensitive marine life areas along Newport Coast, the City has a significant interest in reducing dry- weather runoff in the canyons resulting from gross. over-irrigation practices. One of the keys to reducing over- irrigation is for property owners to install new irrigation controllers that are now available. These controllers meter out the proper amount of water to plants based on a set of parameters including weather conditions, sunlight, soil type, plant type, property slope and the precipitation rate of the valve. Nine months ago, City staff aggressively promoted the SmarTimer irrigation controller rebate program sponsored by the MWDOC to encourage property owners in the City, and especially in Newport Coast, to install weather -based irrigation controllers. In a three -month period, the City's contractor, Hydropoint Data Systems ( Hydropoint), installed controllers under the MWDOC rebate program at 72 residences. MWDOC offers significant rebates, up to $720 for a twelve valve system, for installation of these weather -based irrigation controllers at eligible residences for a limited time while funding lasts. Smart Controller Installation and Services Program October 24, 2006 Page 2 At its April 25, 2006 meeting, the City Council approved the submittal of a grant application under the CALFED Water Use Efficiency and Water 2025 Challenge Grant Programs. The City has been awarded a $300,000 CALFED grant from the U.S. Bureau of Reclamation to be used to reduce dry- weather flows in Newport Coast and around the bays. Of this amount $170,000 is available for the installation of weather based irrigation controllers. On July 11, 2006, the City Council appropriated $30,000 from the General Fund to supplement rebate monies available from MWDOC. City staff now proposes to significantly expand the weather -based irrigation controller program. Under the new phase proposed herein, staff hopes to encourage 400 residents in Corona del Mar and Newport Coast to sign up for the free irrigation controller program in the next six months. Priority will be given to residential properties that drain to Buck Gully. The total anticipated cost of $366,500 will be reimbursed from the MWDOC rebate program ($288,000) and from a portion of the CALFED grant ($78,500). City match funds will not be used during this phase of the irrigation controller program. There are three manufacturers who market an approved SmarTimer controller. However, at this time, only one of those vendors, Hydropoint,- provides a turn -key process to install, maintain and monitor the irrigation controllers per the requirements of MWDOC, Irvine Ranch Water District- and the City. Hydropoint will provide these products and accompanying services at a cost to the City of between $880 and $1170 per unit depending on the number of station valves required for respective residential properties. These costs include Hydropoint's expenses for marketing, scheduling, pre - installation inspections, installation, processing rebate paperwork, follow -up visits and two years of controller maintenance service. Hydropoint is the only vendor that can now provide this full and tum -key process. It is essential to move this project forward quickly and effectively to take advantage of the MWDOC rebate program. City staff will provide oversight to check that Hydropoint is providing good service for our residents. Hydropoint will invoice the City directly for the costs for installing the controllers and providing follow -up services. The City will process the invoices for reimbursements by MWDOC and the Bureau of Reclamation. MWDOC rebates will be paid to the City. The City will track water usage at each participating property to confirm water savings. In the long term, the City will monitor target neighborhoods for reduction of dry- weather flows into the canyons. These results will be shared with State Water Resources Control Board, California Coastal Commission, U.S. Bureau of Reclamation, and MWDOC as supporting evidence of the City's program to protect sensitive marine life areas adversely impacted by urban runoff. After successful completion of this phase of controller installations, staff will consider steps to extend the free irrigation controller program including incentives for residents to upgrade leaking and inefficient irrigation systems. The projected funding for this future phase would come from the remaining funds in the CALFED grant (about $190,000), Smart Controller Installation and Services Program October 24, 2006 Page 3 City- obligated grant matching funds (about $162,000), and potentially from the MWDOC rebate program if there are funds remaining in the program. Environmental Review: Installation of the new irrigation controllers are a minor alteration of existing private facilities and are categorically exempt pursuant to Article 19, Section 15301, Existing Facilities, of the CEQA Guidelines. Funding Availability: Upon approval of the budget amendments, funds for the project will be available in the following accounts: Account Description Contributions — MWDOC Rebate Contributions — CALFED Grant Prepared by: Robert Stein, P.E. Principal Civil Engineer Account Number Amount 7251- C5100968 $288,000 7255- C5100969 78,500 Total $366,500 Submitted by: City of Newport Beach NO. BA- 07BA -019 BUDGET AMENDMENT 2006 -07 AMOUNT: $5se,000.ao EFFECT ON BUDGETARY FUND BALANCE: X Increase Revenue Estimates Increase in Budgetary Fund Balance X Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance Transfer Budget Appropriations X No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations X from additional estimated revenues from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase revenue estimates and expenditure appropriations related to a CALFED Grant and an MWDOC Rebate to be used for installation of Smart Controllers in Newport Coast and Corona del Mar. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Amount Fund Account Description Debit Credit REVENUE ESTIMATES (3601) Fund /Division Account Description 250 48891 Contributions - MWDOC Rebate $288,000.00 255 48892 Environmental Contrib - CALFED Grant $300,000.00 EXPENDITURE APPROPRIATIONS (3603) Description Division Number 7251 Contributions Account Number C5100968 MWDOC Rebate Project $288,000.00 Division Number 7255 Environmental Contributions Account Number C5100969 CALFED Grant Project $300,000.00 Division Number Account Number Division Number Account Number Division Number Account Number Automatic System Entry. Signed: Fihancial Approval: Administrative 9awices Director Date Signed: Administrative Approval. City Manager Date Signed: City Council Approval: City Clerk Date