ADMINISTRATIVE COMMITTEE
2.	CONSIDER EXPENDITURE OF BUDGETED FUNDS TO CONTRACT WITH A & N TECHNICAL SERVICES TO UPDATE COMMERCIAL WATER USE FACTORS
Meeting Date:		January 20, 2010	Budgeted:	Yes
From:		Darby Fuerst,	Program/	Water Allocation Program
		General Manager	Line Item No.:	4-2-4-A
Prepared By:		Stephanie Pintar	Cost Estimate:		$51,500 (including $1,500 reimbursable by CAW)
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on January 20, 2010 and recommended __________.
CEQA Compliance: N/A

SUMMARY: Staff is seeking Board authorization to contract with A & N Technical Services, Inc. for a technical analysis of Non-Residential water use factors for the District. The project involves analysis of data from all Water Permits issued to new Non-Residential water uses between 1990-2005 compared with actual consumption and other factors. The facilities to be reviewed in this project all have water efficient fixtures, and the recommended Water Use Factors will be used to establish base rates for Non-Residential uses by California American Water. This project was anticipated in the Fiscal Year 2009-2010 budget with $50,000, and time is of the essence as California American Water will be implementing new rates beginning in February 2010.

A copy of the Proposed Scope of Work is attached as Exhibit 2-A. The estimated cost will be increased by $1,600 to account for expenses associated with meeting with local Non-Residential property owners prior to conducting the analysis and preparing recommendations. MPWMD and California American Water have a commitment to meet with the commercial property owners prior to updating the factors. Having the consultant available to explain the project and to hear concerns and comments would be valuable to the project outcome. The contract amount is not to exceed $51,500, with the unbudgeted portion being reimbursed by California American Water.

California American Water uses the District’s Non-Residential Water Use Factors to establish baseline allotments for its customers. The District’s factors have been used since the current tiered rates were implemented in 2000. The District’s current factors were last updated in 1991, when a number of new uses were added to the previous list. The factors are based on regional consumption averages by type of use and are utilized by multiplying measurements such as square-footage, restaurant seats, hotel rooms, etc. by the factor to obtain the theoretical water consumption of a project. The original factors were established in 1985 when the District’s current permit process was adopted. The factors were partially updated annually until 1988. The present factors are out of date and do not account for current water efficiency technology.

A & N Technical Services, Inc., has previous experience with the District and has a team of professionals with broad experience in the application of statistical modeling, conservation-oriented water rate design, demand estimation and environmental policy. Members of the technical staff have done work for California American Water, the American Water Works Association Research Foundation, the United States Bureau of Reclamation, the United States Environmental Protection Agency, California Urban Water Agencies, the California Urban Water Conservation Council, and the California State Legislature. A & N Technical Services, Inc. has the background and experience to professionally prepare a water factor analysis and to make recommendations for revisions to the existing factors.

RECOMMENDATION: The Administrative Committee should recommend the Board authorize the General Manager to contract with A & N Technical Services, Inc. to conduct a technical analysis of Non-Residential Water Use Factors in a not-to-exceed amount of $51,500. The contract cost includes two local visits by A & N Technical Services, including a preliminary visit to review data with District and California American Water staff, and a visit to present recommendations and answer questions in a public setting (i.e. Board meeting or workshop). California American Water fully supports this effort to update the District’s Non-Residential Water Use Factors.

IMPACT TO STAFF/RESOURCES: Funds ($50,000) for this project were approved in Fiscal Year 2009-2010 budget. Funding beyond the amount budgeted by the District will be reimbursed by California American Water. District staff will be involved with this project (in collaboration with California American Water staff) to provide support to the contractor with Water Permit data (MPWMD) and consumption data (California American Water).

EXHIBITS

2-A Proposed Scope of Work from A & N Technical Services, Inc.

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