HomeMy WebLinkAboutItem 3b - Contract for Water Conservation and Education Softwarenv �.
STAFF REPORT
Public Works Services Department
DATE: May 19, 2015
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: Vanessa Hevener, Environmental Services Officer
SUBJECT: CONTRACT WITH WATERSMART SOFTWARE, INC. TO PROVIDE
WATER CONSERVATION AND EDUCATION SOFTWARE FOR
ARCADIA WATER CUSTOMERS AND AUTHORIZATION OF AN
ADDITIONAL APPROPRIATION OF $92,750 FROM THE WATER FUND
Recommendation: Approve
SUMMARY
California is entering a fourth consecutive year of severe drought conditions. On April 1,
Governor Brown issued an Executive Order requiring California to reduce water usage
by 25% statewide and those with the highest level of water use to reduce by 36 %. The
City of Arcadia needs to reduce water use by 36% in order to be in compliance with the
Executive Order. While the City of Arcadia is in the process of implementing a variety of
water conservation activities to address the State requirements, the use of the
WaterSmart software would be another tool in which the City could further enhance our
Water Conservation program that would provide outreach and education to water
consumers, and enhance customer engagement.
BACKGROUND
In November 2009, Senate Bill (SB X7 -7) was enacted to require water agencies,
including the City of Arcadia, to increase water use efficiency and reduce per capita
water use by 20% by 2020. Water suppliers are required to set a water use target for
2020, and an interim target for 2015. Each water utility must meet its adopted targets in
order to be eligible to receive State grants and loans. Water utilities will be required to
report interim compliance in 2015 as compared to the estimated interim target. The
actual compliance must be reported in 2020. Base per capita water use must be
reported in gallons per capita per day ( "gpcd "). As part of its 2010 Urban Water
Management Plan adopted by City Council on June 21, 2011, the City of Arcadia set a
2015 interim target of 265 gpcd, and a 2020 final target of 236 gpcd.
Contract with WaterSmart, Inc.
May 19, 2015
Page 2 of 4
Since then, drought conditions in California have persisted and the Governor issued a
drought emergency proclamation in January 2014 calling for a voluntary 20% water
reduction. After several months of voluntary conservation Statewide, the target
reduction percentage was far from being met. As a result, the Governor issued an
Executive Order requiring a mandatory 25% reduction in water use statewide and those
with the highest level of water use to reduce by 36 %. On May 5, the State Water
Resources Control Board reissued and extended emergency water conservation
regulations consisting of the following elements: water restrictions on outdoor water use
for all Californians; a requirement that water suppliers implement their Water Shortage
Contingency Plans; and the requirement that water suppliers provide monthly data on
water production.
DISCUSSION
WaterSmart is a one -of -a -kind behavior change software platform focused on water
efficiency. WaterSmart helps water utilities educate their consumers about how much
water their household uses, how they compare to neighbors, and how they can save
water and money. WaterSmart offers patent - pending personalized Home Water
Reports and access to an interactive web portal. WaterSmart is the only provider of
personalized water reports and an online portal that has proven to yield an annual
savings of 4 -7 %. Based on controlled, randomized experiments, residential customers
who receive the Home Water Reports are three times more likely to participate in the
utility's water conservation programs. Incremental gains in water efficiency at the
household level translate into significant systemwide economic savings and return -on-
investment for WaterSmart's utility customers. Aside from WaterSmart with its
proprietary, copyrighted designs, Public Works Services knows no other software
programs that create and send personalized water reports for water efficiency and
engagement.
If the WaterSmart software was implemented and the City reduced water use by only
4 %, it would save approximately $325,000 annually in Replacement water costs. The
short term goal for purchasing and implementing WaterSmart is to help the City meet
the State's mandatory 36% water cuts compared to water used during the same period
in 2013.
WaterSmart is working with a number of California cities and water utilities with
excellent results, including the Cities of Glendale, Newport Beach, Roseville, Davis,
Cotati, East Bay Municipal Utility District, Irvine Water District and the South Coast
Water District. Utilities that have implemented the WaterSmart software for several
years show annual water savings of over 5 %.
WaterSmart's customer - engagement platform includes paper and electronic Home
Water Reports, a Consumer WebPortal for residents, and a Water Efficiency Dashboard
for the water utility Staff.
Contract with WaterSmart, Inc.
May 19, 2015
Page 3 of 4
The City of Arcadia water conservation program would include:
Home Water Reports
• Home water report mailed to customers
• Reports include personalized water consumption in Gallons Per Day
• Reports include comparison in consumption to neighborhood
• Reports include personalized water savings actions
Water Customer Portal
• Water use comparisons to neighbors
• Historic water use trend analysis
• Seasonal use comparison
• Targeted recommendations
Utility Water Dashboard
• Track and measure results
• Improve customer service interactions
• Consumption and behavior analytics by customer class
• Water use trend analysis
• Leak and high use alerts
Because WaterSmart is a patent - pending, one -of -a -kind software solution, it would be a
sole source agreement. The Public Works Services Department is not aware of any
other vendors that provide a similar software product. The following municipalities and
water providers have engaged the services of WaterSmart Software, Inc. under sole
source agreements: East Bay Muncipal Utility District, Irving Ranch Water District, City
of Cotati, CA., City of Roseville, CA, City of Davis, CA., City of Greeley, CO., South
Coast Water District. A sample Home Water Report is attached.
FISCAL IMPACT
The contract is projected to be $92,750 for the first year of service which includes digital
setup, surveys, and an inaugural report based on customer and billing information. An
authorization of an additional appropriation of $92,750 from the Water Fund is
requested from the FY 2014 -15 Budget. The proposed term of the agreement is one
year with the option for two additional years.
The not -to- exceed price for the second year would be $74,750, and for the third year
the not -to- exceed price would be $74,750. Funding for years two and three of the
agreement will be budgeted during the annual budget process for the respective fiscal
years.
Contract with WaterSmart, Inc.
May 19, 2015
Page 4 of 4
RECOMMENDATIONS
It is recommended that that the City Council authorize the City Manager to execute a
contract with WaterSmart Software, Inc. to provide water conservation and education
software for Arcadia water customers and authorization of an additional appropriation of
$92,750 from the Water Fund.
Approved:
Dominic Lazza
City Manager
Attachment: Sample Home Water Report
C*,l# City Water 123 Mair Street
Program
123 Main Street
Anytown, CA 98765
415.555.5555 info@citywater.com
Your WaterScore
AUG 1 to SEP 30, 2015
You used more water than
most of your neighbors.
Gallons Per Day (GPD)
22 CCF = 276 GPD
Efficient - ��� GPD
Neighbors
Average 250 GPD
Neighbors
You 276 GPD
YOUR HOME WATER REPORT
THIS IS AN INFORMATIONAL REPORT AND NOT A BILL.
SERVICE ADDRESS: 456 Washington St., Anytown
ACCOUNT NUMBER: 123873124 -01
SIGN UP To GET THIS REPORT VIA EMAIL:
ciitywater.com
Blair Jones
456 Washington St.
Anytown, CA 98765
® Surprised by your WaterScore?
Your WaterScore compares your use to others in
City Water District who also have 3 occupants
and a 2,000 to 4,000 sq. ft. yard. Is your
household different? Log on to tune your Profile
and see adjusted comparisons.
D citywate'r.com
® Focus on your outdoor use
An estimated 65% of your annual use is for irrigation.
Water - saving actions just for you
Selected assuming your home has 2 occupants and a 2,000 to 4,000 sq. ft. yard.
D Log on to correct us!
Potential savings if you:
Install
a faucet
r' aerator
Change
grass to
native plants
Irrigation
O Log On
Take the guesswork out of
saving water. See:
• Where you're using the most
• All actions relevant to you
• Step -by -step tips and rebates
citywater.corn
Registration Code: XYZXYZ
Zip Code: 98765
A free service offered by your water utility
and powered by WaterSmart Software