AgdaPkt 2002-06-10 - Laserfiche WebLink

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'"7'~'~ program will be required to open their sites to City inspections and to participate in ~ landscape management services to meet the requirements and regulations of the State Dept. of Health Services. Staff also plan~ to offer rebates for certain irrigation equipment change-outs and retrofits, consistent with similar irrigation conservation programs in the Bay.Area. Therefore, staff recommends a temporary one-year"Recycled Water Incentive Rate" for the water consumed through specific irrigation meters at the above sites. If approved, the commodity rate will be in effect for one year, irrespective of whether SBSA is pumping recycled water (usually June through October) or the City is providing regular potable water to the subject irrigation meters. The rate could be renewed and adjusted on an annual basis by the City Council, up to 2005, and based on the cost of SBSA recycled water at that time. The intention behind the "Year Three" agreements with property owners is to give them enough cost savings on water used to be able to ~)sorb cost in'-reases in their on-site management and still see some real savings by the ~nd of the p, :t project period. The proposed City commodity rate for the period June 11,2001 through May 31,2003 is $0.80 per unit of water. Fixed monthly Basic Service Charges for all meters will remain unchanged. While there is a concern about setting an artificially Iow commodity pricing precedent for future uses of recycled water, staff believes that a high level of cooperation from property owners in the third season of the First Step Recycled Water Pilot Project is essential for ultimate public acceptance of this alternative water supply. Alternative Do not approve the incentive rate proposal, and take the risk that owners will not see value in participating in the pilot program. Fiscal Impact The potential revenue loss by replacing potable water with recycled water for irrigation uses in the next year is estimated at $77,000 including the four new private sites and the nine existing sites. The difference will be paid from the approved Water Fund Capital Improvement Program, Water Recycling Project. Manny Ro Peter Ingrain Public Works Sul:ierintendent Director, Publi~ Works Services City Manager Attachments Exhibit 'A' - Water Customer Accounts Authorized for "Recycled Water Incentive Rate" Minute Order No. 02-36, dated Feb. 4, 2002