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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: MAY 13, 2025
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: THIRD AMENDMENTS TO WATER CONSERVATION
FUNDING AGREEMENTS NO. 66637 AND NO. 70026 WITH THE
METROPOLITAN WATER DISTRICT OF SOUTHERN
CALIFORNIA
ATTACHMENT (Y/N): YES ITEM # 18
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Approve the Third Amendments to Water Conservation Funding Agreements No. 66637 and No. 70026 (Agreements) with the Metropolitan Water District of Southern California (MWD) to extend the term of each Agreement by ten years and to implement administrative updates and clarifications to MWD’s water conservation funding programs; and
2. Authorize the Public Utilities General Manager, or designees, on behalf of the City of Anaheim, to execute the Third Amendments and any related documents and to take such necessary or advisable actions to implement and administer the Agreements as amended.
DISCUSSION:
Since 2005 and 2006 respectively, Agreement No. 66637 (for commercial, industrial, and institutional customers) and Agreement No. 70026 (for residential customers) have allowed MWD to offer water conservation programs directly to Anaheim’s water customers and to provide funding for various water conservation programs. Both Agreements, which are set to expire on June 30, 2025, are necessary for Anaheim Public Utilities (APU) water customers to continue to participate in conservation programs and to receive related rebates.
MWD’s Water Conservation Programs provide rebates for water conservation measures, such as high efficiency toilets, clothes washers, weather-based irrigation controllers, turf removal, and rotating sprinkler nozzles for retail customers of its member agencies.
Since the inception of the Agreements, MWD has provided approximately $11M in rebates and incentives, which has resulted in APU customers conserving over 28.5 billion gallons of water. Through these conservation programs, more efficient building Third Amendments to Water Conservation Funding Agreement No. 66637 and No. 70026 May 13, 2025
codes, and educational efforts, annual water demands have decreased 30% over the past 20 years.
These Agreements were previously amended and renewed in 2009 (First Amendments) and 2015 (Second Amendments). The Third Amendments will extend the Agreements for an additional 10 years and allow for continued participation by APU and its customers. The Agreements as amended include flexibility to add or modify conservation rebates and programs, for example, should grant funding become available, as well as to clarify administrative requirements such as record-keeping and invoicing.
These Agreements are also an important resource that will help to address the recently adopted State Water Resources Control Board regulations on Making Conservation a California Way of Life that is intended to further reduce urban water use in California.
These Agreements support the Citywide Strategic Plan, Goal C – Invest in Infrastructure and Amenities, Strategy 9 – Promote drought-tolerant landscaping through sustained, enhanced rebates that target non-functional turf that meets state compliance requirements.
IMPACT ON BUDGET:
Approval of the Third Amendments has no budgetary impact, as MWD pays rebates and incentives directly to APU water customers. Future water conservation programs administered under the Agreements would be funded through APU’s restricted Water Utility Fund, including wholesale water supply costs, and subject to City Council approval of appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachments:
1. Third Amendment to Water Conservation Funding Agreement No. 66637
2. Third Amendment to Water Conservation Funding Agreement No. 70026
3. Original Water Conservation Funding Agreement No. 66637 with 1st and 2nd Amendments
4. Original Water Conservation Funding Agreement No. 70026 with 1st and 2nd Amendments