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Home My WebLink About6.a. MCES Water Conservation Grant � ROSEMU�� EXECUTIVE SUMMARY UTILITY COMMISSION Utility Commission Meeting: November 16, 2015 AGENDA ITEM: Water Efficiency Grant Program AGENDA SECTION: New Business PREPARED BY: Patrick Wrase, PE, Director of Public AGENDA NO. 6.a. Works / City Engineer ATTACHMENTS: Water Efficiency Grant Program and APPROVED BY: �,� A lication Form RECOMMENDED ACTION: Motion Directing Staff to Request City Council Approval for Application to the Metropolitan Council Water Efficiency Grant Program BACKGROUND The Metropolitan Council (1�TCES) is offering, for the first time, a Water Efficiency Grant to be used towards water efficient technologies. l�iCES has $250,000 available, appropriated by the 2015 Minnesota Legislature, to be awarded to municipalities making an effort to reduce potable�vater consumprion. Grants will be awarded in amounts from $2,000 to $50,000. Grant funding co�-ers 75% of the program costs, and municipalities are required to match 25% of the allocated amount. The funds may be used as rebates towards the purchase and installation of lo�v-flo�v toilets, Energ�� Star-rated washing machines, and WaterSense irrigation controllers. The application due date is �Tonday, November 30`h. The initial application to the program is not expected to entail more than a few days of research and application effort for the submittal to the l�iCES. From reviewing a few cities that already offer water conser�-ation rebates, the funding is generally at $50 for WateY Sense Toilets, �150 for Energy Star Washers and$150 for Water Sense Irrigation Controllers. The ongoing adininistration of the program will require more significant staff time with application form creation, distribution, assistance, review, inspection and payment. r1n inirial estimate is that 2 hours of staff time would be required for each application, start to finish,including on site certification inspection. With nearly 8000 connections, assuming just 1.25% of our customers apply, 100 applications would be processed requiring an estimated 200 hours of staff time annually. The water savings associated with the program are substantial. WaterSense Toilets are estimated to save 4000 gallons per year (gpy), EnergyStar Washers 3000 gpy and WaterSense Irrigation Controllers up to 8800 gpy. r,ssuming 100 applications distributed equally among the three rebate programs, an annual savings of 526,000 gallons would be realized. Regarding program cost, making similar utilizauon assumptions, the total estimated rebate payments would be �11,6G6 per y�ear with $8,749 (75%) funded from the ��CES Grant Program and �2,916 in funds from the Rosemount Water Utilin' Fund. SUMMARY Staff has presented this information to the Cit�- Council at the November 9`h City Council Work Session and the Council was supportive of application to the grant program. Staff is seeking approval of a motion from the Utiliry Commission to request Ciry Council approval for application to the 1�letropolitan Council Water Efficiency Grant program G:A��atcr\�[CI;ti��,'atcr I�:fticicnc} Grant\31115111G U(:�C'�atcr{?tficicnc} Grant Yrogram.docs �� . . �_ /►� Metropolitan Council � � � � � ti1F-I F�OI'OL( TA;� �� 1 I I ft I \\l) 8, 11 (, �ll Water Efficiency Grant Program Overview The Metropolitan Council (Council)will implement a water efficiency grant program effective September 30, 2015 to June 30, 2017. Grants will be awarded on a competitive basis to municipalities that manage municipal water systems. The Council will provide 75%of the program cost;the municipality must provide the remaining 25%. Grants will be made available in amounts with a minimum of$2,000 and a maximum of$50,000. Grantees will be required to provide estimated water savings achieved through this program for Clean Water Land& Legacy Amendment reporting purposes. Legislative Directive Minnesota 2015 Session Law Ch. 2,Art. 2,Sec. 9: $250,000 the first year and$250,000 the second year are for the water demand reduction grant program to encourage implementation of water demand reduction measures by municipalities in the metropolitan area to ensure the reliability and protection of drinking water supplies. Grant Program Goal The goal of the water efficienty grant program is to support technical and behavioral changes that improve municipal water use efficiency in the seven-county metropolitan area. Critical Points to Remember • The applying municipality must be a water supplier • New construction and new developments are not eligible • Funds are for rebates or grants only;consulting and city staff time are ineligible • Grant funds for a municipality's rebate or grant program do not cover 100%of the program cost • Grant recipients must display the Clean Water, Land and Legacy Amendment logo and the Metropolitan Council logo Grant Program Structure Administration and Funding The water conservation grant program will be administered by the Metropolitan Council Environmental Services (MCES)and will be funded with $500,000 appropriated by the 2015 Minnesota Legislature in Clean Water Funds for FY 2015-2016. Grant applications will be reviewed and ranked by the MCES Water Supply Planning Unit staff. Grants are only for water efficiency programs offering rebates or grants to property owners who are customers of the municipal water supply system and who replace specified water using devices with devices that use substantially less water. 1 Grants will be awarded to municipalities in amounts ranging from $2,000 to$50,000 for providing rebates or grants to property owners. Municipalities will be responsible for the design of their rebate or grant program and its details.Grant qavments to the municipalitv will be for 75%of approved rebate or�rant qrogram amounts. The municipalitv must provide the remainin�25%of the pro�ram cost. Rebates or grants are eligible for reimbursement on device replacements conducted September 30, 2015 through June 30, 2017. Please note: municipalities may choose the amount of the rebate or grant to apply to any specified water device, up to and including 100%of eligible costs for the device replacements. Eligibility Per legislative language,the grant program is limited to municipalities in the seven-county metropolitan area. Communities eligible per above must apply to participate and, if approved, sign a standard Council grant agreement, before any eligible rebates or grants can be submitted for reimbursement.Agreements shall require that communities: • Entirely pass through grants received(as is being done by MCES). • Sign certification of work done to receive grants. • Retain records,and cooperate with any audit. • Do all communications with property owners and ensure all written communications to property owners include both the Clean Water,Land and Legacy Amendment and the Metropolitan Council's logo. • Agree to provide quantitative information for state reporting purposes. Eligible water efficiency measures: • Toilet replacement with a US EPA WaterSense labeled toilet • Clothes washing machine replacement with an Energy Star qualified clothes washing machine • Irrigation system audits by a WaterSense audit-certified professional that result in an irrigation system Controller Replacements with a WaterSense labeled controller, replacement of broken or inefficient sprinkler heads Expenses eligible for rebate are the out-of-pocket cost of the device and its installation only, not to include any owner labor costs. In addition, new construction and new developments are ineligible, as this program is intended as a current infrastructure replacement program. Application Process • Applicants must be municipal water suppliers. • Municipalities will submit MCES supplied application form by November 30, 2015. Required information will include: o the municipality's rebate orgrant program design and work plan (Template Provided) o examples or proposed examples of communications to property owners o requested total grant amount o estimated annual amount of water saved by the applying municipality. • Metropolitan Council will notify municipalities of grant awards and provide agreements by December 31, 2015. 2 Proposal Selection Criteria Preference will be given to: • Municipalities where total per capita water use is greater than 90 gallons per capita per day (gpcd)or residential per capita water use is greater than 75 gpcd (based on 2013 water data reported to the DNR) • Municipalities that are supplied 100%with groundwater • Municipalities with identified water supply issues in the Master Water Supply Plan Community Profiles (including location within the DNR North& East Metro Groundwater Management Area) • Municipalities with a high ratio of peak monthly water use to winter monthly water use (based on 2013 water data reported to the DNR) • The order in which applications are received and until grant funds are completely committed. Funding Process and Reporting Requirements • Utilizing forms provided by MCES,the following information must be reported on a quarterly basis: o Number,type and amount of rebates or grants provided to property owners,along with each property address o Estimated annual gallons of water saved per installation o Municipality matching funds disbursed and encumbered for disbursement o Number of unmet funding requests from property owners • Upon review and confirmation of the above information, MCES will process a grant payment in the amount of 75%of approved total rebates or grants for the reporting period. • MCES will provide confirmation of grant balances available upon request and reserves the right to amend grant agreements, in collaboration with grantee municipality, if quarterly reporting indicates rebate or grant programs will not ful►y utilize grant awards within the grant period. Qualified Activities • Toilet Replacements http://www.epa.�ov/WaterSense/product search.html • Residential Clothes Washing Machine Replacements http�//www ener�vstar�ov/productfinder/product/certified-clothes-washers/results • Irrigation System Audits that result in Irrigation System Controller Replacements http://www.epa.gov/watersense/outdoor/cert proQrams.html http://www.epa.�ov/WaterSense/product search.html • Irrigation System Controller Replacements only http://www.epa.�ov/WaterSense/qroduct search.html 3 Reporting and Rebate Examples Munici ali ABC ---- Es�Annual Prop��'ty Addr�sa Prop�rty Ty{» W�ter O�viC� # R�bat�per Total Municipality Grsnt Replac�d device Rebat� Cor+tAbutlo� 4mount W�ter Sav�d (Gal) Z828 Service Rd,55035 Res7dential Toil?t 2 550.00 5100.00 $25.00 575-00 250 Clothes Washer 1 5125.00 5125.00 531.25 593 75 325 1658 Rockfo�d Rd,5503Q Residential Toilet 1 SSOAO $50.00 512.50 537-50 250 Ciothes Washer 1 5125 00 5125.00 53115 593.75 325 IrrigaUon Control 2 5200.00 5400.00 5100.00 5300A0 1575 52 Pennington Ave,55035 Commerual Toilet 4 550.00 5200.00 550.00 5150.00 S00 Totals 51,000.00 5250.Q0 5750.00 3225 Munici ali XYZ Eat Annual Wat�r D�vic• R�bat�p�r Total Municipality Gra�t PropeRy Address Prop�rty Typ� M Wat�r Sav�d R�placed d�vico R�bat� Convibutio� Amo�nt (Gal) 2528 Service Rd,55035 Residentiai Toilet 2 Full cost' S750.00 5187.50 5562 SO 250 Clothes Washe� 1 Full cost' S1.650.00 5412 SO 51,237.50 3Z5 1658 Rockford Rd,55034 Residentlal Toi�et 1 FuII cost` $375.00 593 75 5281.25 250 Clothes Washer 1 Full cost' $1,275.00 5318.75 5956.25 325 Irrigatlon Control 2 Fuli[ost' $1,875.00 $468.75 $1,4p6.25 1575 52 Pe�nington Ave,55035 Commercial Toilet 4 FuU cost' S1,700.00 5425-00 51,275.00 SOO To[als 57,625.00 51,906.25 55,718.75 3225 ` fi�lf cost as eligible 4 Nletropolitan Council Vb'ater Efficiency Grant Application Form Applicant Information Municipality: Municipality Utility: Mailing Address: Primary Contact Information: The City/Community primary authorized representative (all correspondence and city responsibilit} regardiny participation in the Grantee Program should be should be addressed to individual named below). NAME: TITI.E: STREET: C(TY, ZIP: PHONE: EMAIL: Secondary Contact [nformation: City/Community Secondary Authorized Representative: NAME: TITLE: STREET: CITY. Z.IP: PHONE: EMAIL: Municipal Utility Total Per Capita Water Use (2013): Municipal Utility Residential Per Capita Water Use (2013): Municipal Utility Ratio of Peak Month to w'inter Month w'ater Use (2013): Municipality's estimated annual water savin`s from proposed program: Municipal Utility� Grant or Rebate Program Design Requested Granl Amount (must equal 7�%of total program bud�et): Required Uti(ity Matchin� Amount(must equal 2�%of total program bud�,et): W'ill your pra�ram be a grant pro��ram or rebate program: �:� �.... . � � :�. � .�� • �•�. . . �1ETRl)I'(1LIT�N Estimated Number of Items: Item Estimated Number Toilets Clothes Washing Machines lrrigation System Controllers Metropolitan Council Water Efficiency Grant Application Form Project Work Plan and Schedule` Task Description Responsible Estimated Start Date Estimated Completion Person/Group Date * Nlunici�al uti(ity may� create o��n project plan and schedule form Metropolitan Council Water F.fficicncy� Grant Application Eorm Communications to Property Owners How wi11 your program be advertised? Newsletter� Print Media n Email II Twitter n Radio n Television n Please provide examples of proposed newsletter, print media, or email communication Critical Points to Remember • The applying municipality must be a water supplier • New construction and new developments are not eli�ible • Funds are for rebates or grants only;consulting and city staff time are ineligible • Grant funds for a municipality's rebate or grant program do not cover 100%of the program cost • The municipality's rebate or grant amount cannot pay for 100%of the eligible activity's cost • Grant recipients must display the Clean Water, L,and and Legacy Amendment logo and the Metropolitan Council logo