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June 10, 2002 <br /> <br />Subject <br />First Step Recycled Water Pilot Project <br /> <br />Recommendation <br />By resolution, adopt a tempora~ "Recycled Water Incentive Rate" for specified irrigation <br />water meters in Redwood Shores, and impose an $0.80 per unit of water fee for those who <br />join the recycled water distribution system. <br /> <br />Background <br />In 1999, in partnership with the South Bayside System Authority (SBSA) wastewater <br />treatment plant, the City Council embarked on a pilot recycled water project for landscape <br />irrigation uses in the eastern portion of Redwood Shores (the "First Step Project"). Year <br />one of the two-year commitment was successfully implemented in the summer of 2000, <br />utilizing eight city-owned and maintained landscape sites. In year two we added The <br />Pescadero Apartments property to the city sites in order begin building public confidence <br />about the safe and effective use of recycled water. Additional in-the-field learning about <br />the conversion process from drinking to recycled in Redwood Shores was significant with <br />the two other private properties we intended to connect, both of which required irrigation <br />system retrofit work in order to get cross connection testing approval. <br /> <br />On May 15, 2002, upon mutual agreement to continue the First Step Project, and at the <br />request of the City Council (see attached Minute Order No. 02-36, dated Feb. 4, 2002) the <br />South Bayside System Authority (SBSA) Commission adopted a policy to provide a limited <br />amount of recycled water in 2002 and 2003, and adopted a wholesale rate for recycled <br />water that recovers their direct production costs. The SBSA unit charge adopted for 2002 <br />is $0.80 per 100 cubic feet (one "unit" or 748 gallons). By comparison, the current <br />wholesale unit rate for Hetch Hetchy drinking water is $0.88. <br /> <br />The Public Works Services staff, with the assistance of an environmental water <br />management consultant, has narrowed the third year private site candidate list to four (to <br />be added to the existing nine sites): <br /> 1. California Seacrest Home Owners Association (full site) <br /> 2. The Pointe Business Center (full site) <br />3. Harbor Court Home Owners Association (full site) <br />4. The Cove Home Owners Association (full site) <br />Once staff formalizes agreement with these four groups, their irrigation meters will be <br />added to the recycled water distribution system, along with the City's landscape accounts <br />east of Shearwater Parkway, for the summer/fall irrigation season. <br /> <br />In order to gain property owner's cooperation for the coming project year, staff has <br />concluded that financial incentives are necessary to ensure successful participation in the <br />"First Step" pilot project. Each property owner who wishes to participate in the pilot <br /> <br /> <br />