REIMBURSEMENT AGREEMENT WITH THE INLAND EMPIRE UTILITIES AGENCY FOR IRRIGATION SYSTEM RETROFITS

SUBJECT:

REIMBURSEMENT AGREEMENT WITH THE INLAND EMPIRE UTILITIES AGENCY FOR IRRIGATION SYSTEM RETROFITS

RECOMMENDATION: That the City Council approve a Reimbursement Agreement with the Inland Empire Utilities Agency (IEUA) for on-site irrigation system retrofits from a California Department of Water Resources Urban Drought Assistance Grant subject to non substantive changes; authorize the City Manager to execute said agreement with IEUA (on file in the Records Management Department); and authorize the City Manager or his designee to execute subsequent individual Customer Retrofit Agreements subject to non substantive changes (on file in the Records Management Department).

COUNCIL GOALS: Develop Strategies And Take Actions To Minimize The Negative Impacts Of The Global Financial Downturn On Ontario’s Economy And The City’s Fiscal Health

Invest In The City’s Infrastructure (Water, Streets, Sewers, Parks, Storm Drains And Public Facilities)

Pursue City’s Goals And Objectives By Working With Other Governmental Agencies

FISCAL IMPACT: IEUA received a $1 million grant from the California Department of Water Resources for retrofitting privately-owned landscape irrigation systems from potable water usage to recycled water within IEUA’s service area and $275,891 of the funding has been allocated for Ontario water customers. These “pass-through” funds are available to the City’s water customers with no direct cost impact to the City except for routine administration of the program.

BACKGROUND: This funding will help to expedite the conversion of some of Ontario’s larger water customers from potable to recycled water usage. Such conversions reduce the City’s dependence on more expensive and less reliable imported water supplies and aid the City in addressing an anticipated reduction in imported water supplies this summer. As part of managing statewide drought conditions, it is likely that the Metropolitan Water District will implement mandatory reductions in their delivery of imported water to Southern California. The City currently utilizes approximately 30 percent imported water in meeting its total water demand.

The California Department of Public Health has specific requirements for the use of recycled water for irrigation systems. A typical irrigation retrofit may include replacement of irrigation head caps with purple caps (the universal color for recycled water); installation of tags denoting recycled water on irrigation heads, valve boxes, valves, irrigation controllers, and other equipment; disconnection of the irrigation system from the potable source/meter and connection to a new recycled water source/meter; installation of backflow devices; and installation of irrigation pumps when the recycled water system pressures are lower than the potable system.

In order to receive pass-through grant funds, each customer will be required to enter into a separate Customer Retrofit Agreement with the City and will be required to complete the irrigation system retrofits on their property by June 30, 2009. Upon verification that the customer obligations have been satisfied, the water customer will be eligible for reimbursement of their retrofit costs following receipt of funds from IEUA.

STAFF MEMBER PRESENTING: Ken Jeske, Utilities General Manager