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Home My WebLink About5.a. Irrigation Meters and Water Conservation EXECUTIVE SUMMARY Utility Commission Meeting: March 20, 2017 AGENDA ITEM: Irrigation Meters and Water Conservation AGENDA SECTION: Old Business PREPARED BY: John Morast, PE, Interim Director of Public Works / City Engineer and Christine Watson, Public Works Coordinator AGENDA NO. 5.a. ATTACHMENTS: Map APPROVED BY: LJM RECOMMENDED ACTION: Motion to recommend staff and City Council to proceed with one of the following five options (1) Do-nothing - continue as-is with the single and irrigation (second) meter system (2) Drop the irrigation (second) meter program and remove all irrigation (second) meters (3) Table irrigation (second) meter discussions until a future date (4) Table irrigation (second) meter discussions and direct staff to include irrigation meter usage and billing, with a recommendation, into the water comprehensive plan update (5) Recommend to City Council findings 1-4 and to implement changes ISSUE Staff has had ongoing discussions with the Utility Commission about the use of separate meters for residential irrigation systems. At the February 22, 2016 Utility Commission meeting, commission members requested that staff present additional information before making a final recommendation. At this time, staff wishes to receive a final recommendation from the Utility Commission on the following items: • Offering irrigation meters for residential properties with irrigation systems • Requiring all new irrigation systems to have separate irrigation meters • Charging the irrigation rate on all irrigation water (instead of combining it with domestic use) • Expanding the existing educational program to encourage efficient water use BACKGROUND In July 1994, based on recommendations from a Comprehensive Water and Sewer Rate Study performed by Short Elliot Hendrickson, Inc. (SEH), the City eliminated the “sprinkler credit” and began billing for sewer based on the actual gallons of water metered in each residence. In conjunction with this change, the City began allowing homeowners to purchase separate meters for irrigation systems as a way to avoid paying sewer charges on water used solely for irrigation. This is the most accurate way to bill for actual water and sewer use, and it allows the City to keep the sewer use rate approximately 20% lower than if the “sprinkler credit” was still offered. G:\UTILITY COMMISSION\UC Information\UC Items and Packets\2017\20170320\5.a. Irrigation Meters and Water Conservation.docx The “sprinkler credit” uses winter quarter water use to bill for third quarter sewer use. This method is complicated in Rosemount due to the cycled billing, where different customers have different winter quarters (winter quarter can be either Nov-Dec-Jan or Dec-Jan-Feb or Jan-Feb-Mar depending on which cycle area you live in, as shown on the attached map). Returning to the “sprinkler credit” method of billing would require a major adjustment in the billing process in order for all customers to be billed accurately based on the same winter quarter period (i.e. monthly billing, or quarterly but not cycled). Irrigation Meters and Water Conservation Based on average water use and “typical” meter cost, the average homeowner has a 4-year return on investment for the irrigation meter purchase. Currently in 2017, there are 822 residential customers with irrigation meters (shown on the attached map). TABLE 1 shows the 2015 water use data for 803 of these customers compared to the following groups: • Single meter households with irrigation systems (a sample of 103 homes is provided, previously 23) • All other single meter households (excluding the 103 above) • All single-family households in the city (includes everyone) The data shows that irrigation customers without a separate meter have a higher spike in third quarter usage than irrigation customers with a separate meter (i.e., their third quarter spike is 24 percentage points higher than the 2-meter group: 332% vs. 308% as shown in FIGURE 1). This suggests that the main factor contributing to high water usage is not necessarily the irrigation meter, but rather the presence of the irrigation system itself. While the 2-meter group does have the highest per-household consumption, it could be due to factors beyond just having an irrigation meter (such as lawn establishment, household income, neighborhood expectations, family size, etc.). 308% 332% 99% 134% 0% 50% 100% 150% 200% 250% 300% 350% Q1 Q2 Spike %Q3 Spike %Q4 Spike % FIGURE 1: Spike in Usage Compared to Q1 2-meter households 1-meter households with irrigation Other 1-meter households All housholds G:\UTILITY COMMISSION\UC Information\UC Items and Packets\2017\20170320\5.a. Irrigation Meters and Water Conservation.docx TABLE 1 – One Meter vs. Two Meter Households 2 Meter Households (803) Quarter Usage Percent of Total Use Percent Above Q1 Gal Per Household Q1 11,752 11% 15 Q2 22,625 21% 93% 28 Q3 47,927 45% 308% 60 Q4 23,247 22% 98% 29 105,551 131 SAMPLE - 1 Meter Households w/Irrigation Systems (103) Quarter Usage Percent of Total Use Percent Above Q1 Gal Per Household Q1 1,305 11% 13 Q2 2,730 23% 109% 27 Q3 5,639 47% 332% 55 Q4 2,313 19% 77% 22 11,987 116 All Other 1 Meter Households (5406) Quarter Usage Percent of Total Use Percent Above Q1 Gal Per Household Q1 65,519 18% 12 Q2 87,792 24% 34% 16 Q3 130,301 35% 99% 24 Q4 87,154 24% 33% 16 370,766 69 All Households (6312) Quarter Usage Percent of Total Use Percent Above Q1 Gal Per Household Q1 78,576 16% 12 Q2 113,147 23% 44% 18 Q3 183,867 38% 134% 29 Q4 112,714 23% 43% 18 488,304 77 Note: Actual 2015 usage, all figures in thousands G:\UTILITY COMMISSION\UC Information\UC Items and Packets\2017\20170320\5.a. Irrigation Meters and Water Conservation.docx Irrigation Meters and Water Conservation (Continued) Staff believes we need to shift our focus from away the irrigation meter group only, and begin educating all groups of irrigation users about the benefits of efficient water use. Eliminating irrigation meters will not resolve the issue of over-watering by the other irrigation customers; other solutions are needed. The following initiatives may be effective in helping to encourage water efficiency from our high-usage customers with irrigation systems, whether they have irrigation meters or not: • Distribute educational material to households with irrigation systems (we need to identify more households, beyond the 925 we already know about) • Develop an informational flyer to be included with utility bills that would highlight three groups of water users (the top 10%, the average user, and the bottom 10%) as well as what the average user in each of those groups pays. Customers can then identify which group they fall into by comparing their usage with the averages. A sample flyer will be provided at the meeting. • Actively enforce the sprinkling restrictions, including the monetary penalty (additional seasonal staffing and cooperation with the Community Development and/or Police departments may be required) • Enhance the City webpage with new information, and draw attention to it with a news flash, Mayor’s press release, or through social media • Implement educational programs with students at local schools, and with kids in our summer youth programs in the parks Irrigation Meter Billing To encourage conservation specifically among the irrigation meter group, we can adjust our billing system so that all irrigation water is billed at the irrigation rate of $2.71 per thousand gallons (as it is for HOAs, businesses, schools, etc.). In the example below, the total household usage is 99,000 gallons for the quarter (15,000 domestic, 84,000 irrigation). The current billing system adds the two meters together before applying the tiered rates. Consequently, this household is getting 33,000 gallons of irrigation water at a lower rate than other irrigation-only customers. The following tables illustrate the difference. Current Billing Method Gallons Rate Total Tier 1 12,000 $1.16 $13.92 Tier 2 12,000 $1.44 $17.28 Tier 3 24,000 $1.81 $43.44 Irr Tier 51,000 $2.71 $138.21 99,000 $212.85 Adjusted Billing for Irrigation Gallons Rate Total Tier 1 12,000 $1.16 $13.92 Tier 2 3,000 $1.44 $4.32 Tier 3 0 $1.81 $0 Irr Tier 84,000 $2.71 $227.64 99,000 $245.88 Under both billing scenarios, this customer is saving $160.44 in sewer use charges (84 x $1.91). With the adjusted billing method, this customer would still have a net savings of $127.41, but would be paying the same rates for irrigation water as our other irrigation-only customers. If all irrigation meter consumption was charged at the highest rate, the anticipated increase in revenue would be approximately $43,300 as detailed in TABLE 2. If approved, this action would be implemented in 2018 since the rates for 2017 have already been established by Council. Keep in mind that as conservation efforts increase, the desired G:\UTILITY COMMISSION\UC Information\UC Items and Packets\2017\20170320\5.a. Irrigation Meters and Water Conservation.docx decrease in consumption will result in reduced revenue. TABLE 2 – Annual Water Usage Charges (2017 rates) Type of Unit Per Home Homes Total Average 1-meter home $84 5406 $454,104 Average 2-meter home (current rate structure) $204 803 $163,812 Average 2-meter home (all irrigation at higher rate) $258 803 $207,174 SUMMARY Because irrigation meters provide the most accurate way to bill for water and sewer use, and they do not appear to be the main cause for high water consumption, staff believes the irrigation meter program should continue and be expanded to require separate meters with all new irrigation system installations. With an increase in our educational program, we believe we can have a positive influence on our irrigation customers and successfully encourage more efficient water use among all customers. By annually updating TABLE ONE, we can monitor the water use among the groups to help measure the effectiveness of our education program. Staff is returning to the Utility Commission with a final presentation on water usage, irrigation and second meter data for discussions. Staff would like to receive direction on how to proceed regarding water usage, second meter requirements, water conservation and educational materials. With a thorough review of past water usage and comparisons of single and two meter water usage, staff believe the most accurate method to measure and bill for actual water and sewer usage is to: (1) continue the use of irrigation meters for residential properties (2) require irrigation meters with all new irrigation installations (3) bill all irrigation water at the irrigation rate (beginning in 2018) (4) expand the educational program to encourage efficient water use Staff is requesting a recommendation from the Utility Commission on how to proceed: 1. Do-nothing - continue as-is with the single and irrigation (second) meter system 2. Drop the irrigation (second) meter program and remove all irrigation (second) meters 3. Table irrigation (second) meter discussions until a future date 4. Table irrigation (second) meter discussions and direct staff to include irrigation meter usage and billing, with a recommendation, into the water system comprehensive plan update 5. Recommend to City Council the findings above (1-4) and to implement changes G:\UTILITY COMMISSION\UC Information\UC Items and Packets\2017\20170320\5.a. Irrigation Meters and Water Conservation.docx