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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