Eastern Municipal Water District
California

Action/Info Item
4289
Recommended for Approval
Feb 13, 2020 3:30 PM

Approve and Authorize Accelerated Retrofit Program Funding Agreement with Western States Mobile Home Parks, LLC ($1,468,311), for The Lakes at Hemet West and Appropriation in the Amount of $1,500,000

Information

Department:Recycled DivSponsors:Assistant General Manager Joe Mouawad
Category:Action/Info ItemMeeting Workflows:Board Planning Committee Workflow

Background

The Recycled Water Accelerated Retrofit Program (Program) is designed to advance recycled water retrofit projects to achieve potable water offsets.  The Program incorporates streamlined business processes, technical support, and financing mechanisms to expedite the permitting, design, and construction of retrofit sites.  Public agencies, schools, parks, and other large landscape areas are targeted retrofit customers.

 

The Program established a recycled water rate equal to 75 percent of the customers’ potable water rate in order to reimburse EMWD for program implementation costs.  Once each site has been converted to recycled water, the customer will be charged this rate for up to eight years, after which the customer will revert to the then applicable recycled water rate.

 

On August 8, 2015, the Board approved the Phase I Program and authorized execution of the District’s standard agreement for Recycled Water Retrofit Funding up to $250,000, with total Phase I appropriation of $2,200,000.  Phase I successfully converted 24 sites and exceeded the original goal to achieve 400 acre-feet per year (AFY) of potable water.

 

On September 20, 2017, the Board approved the Phase II Program and execution of the District’s standard agreement for Recycled Water Retrofit Funding up to $250,000, with a total Phase II appropriation of $2,500,000.  Phase II project sites currently in process are expected to achieve 455 AFY of potable water offset.

 

On September 19, 2018, the Board approved modifications of terms and funding limits to the District’s standard form of Accelerated Retrofit Program funding agreement with the City of Hemet, for the Brubaker Park retrofit project.

 

On August 21, 2019, the Board approved modifications of terms and funding limits to the District’s standard form of Accelerated Retrofit Program funding agreement with Valley-Wide Recreation and Park District and Elite Community Management, to advance the Shrimp Lane, Benton Channel, Holland Road, and Sky Canyon Business Park retrofit projects.

 

The Lakes at Hemet West is an active living community within the City of Hemet that includes a golf course and over 7-acres of aesthetic lakes.  The Lakes at Hemet West currently uses potable water and is requesting support through the Accelerated Retrofit Program to complete a retrofit of the site to recycled water.  When completed, the project will offset 172 acre-feet per year of potable water and convert over 300,000 square feet of non-functional turf.  Staff has worked closely with the customer to develop design and regulatory approvals, coordinate turf conversion rebate programs and develop a public education program for the residents. 

 

Due to the complexity of the site and associated higher costs encountered, modifications of terms and funding limits to the District’s standard form of Accelerated Retrofit Program funding agreement (Exhibit A) with The Lakes at Hemet West are necessary to advance the project.  The proposed modifications include increasing Program funding for this specific project from $5,000/AF to $7,500/AF of annual demand and extending the Program water rate duration term from 8 years to 12 years.

Financial/Strat Plan/Enviro

FINANCIAL IMPACT:

This project will be financed from the Restricted Recycled Expansion Fund.

 

STRATEGIC PLANNING GOAL/OBJECTIVE:

Water Recycling: Implement on-going treatment, storage and distribution system projects and programs to allow 100 percent utilization of treated effluent for the highest beneficial and sustainable uses possible.

 

ENVIRONMENTAL IMPACT:

This item is not a project as defined in the California Environmental Quality Act Code of Regulations, Title 14, Chapter 3, Section 15378.

 

Recommendation

Approve and authorize the following:

 

1.      Execution by the General Manager, or his designee, the Accelerated Retrofit Program financing agreement for The Lakes at Hemet West Project with Western States Mobile Home Parks, LLC., DBA The Lakes at Hemet West in the amount of up to $1,468,311 including:

·         $112,695 reimbursement through the SoCal Water$mart

·         $1,290,000 @ $7,500 per annual acre foot demand

·         Extension of Program water rate duration term to 12 years

 

  1. Additional appropriation of $1,500,000 to complete Phase II of the Accelerated Retrofit Program.

Meeting History

Feb 13, 2020 3:30 PM  Board Planning Committee Regular Meeting
draft Draft
RESULT:RECOMMENDED FOR APPROVAL