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HomeMy WebLinkAbout6.h. MCES Water Efficiency Rebate Extension EXECUTIVE SUMMARY City Council Regular Meeting: July 5, 2017 AGENDA ITEM: MCES Water Efficiency Rebate Extension AGENDA SECTION: Consent PREPARED BY: Erin Fasbender, Public Works Secretary AGENDA NO. 6.h. ATTACHMENTS: None APPROVED BY: LJM RECOMMENDED ACTION: Motion to approve the extension of the water rebate program through December 31, 2017 or until $15,000 in additional rebates has been issued BACKGROUND The City of Rosemount is one of 19 metro cities that were awarded a Water Efficiency Grant from the Metropolitan Council (MCES). Our program was highly successful and we used all our initial grant funds early. With that success, and since the initial grant amount of $9,000 was used up before the program ended, the Met Council awarded the city an additional $20,000 to reimburse for any additional rebates that are submitted to us by June 30, 2017. The intent of the additional money was to bridge the gap until the next funding cycle, which was anticipated to extend the program. The Minnesota Legislature did not approve funding for this program beyond June 30, 2017. However, due to the success of the program in Rosemount, staff is seeking approval to continue issuing up to $15,000 in additional rebates through December 31, 2017, with the understanding that no further reimbursement will be coming from the Met Council after June 30. It is important to note that no additional money is actually needed since the rebates are not “paid out” but rather given in the form of a credit on the customers’ utility bills. This will result in a loss of revenue to the Water Utility Fund equivalent to the success of the program, up to the $15,000 limit. The rebate amounts for the purchase and installation of water-efficient products will remain the same: toilets ($50), washing machines ($150), and irrigation controllers ($150). Table 1 provides a summary of the rebate program activity to-date. Table 1 Total (1/1/2016-6/13/17) Gallons of Water Saved Annually (est) 738,200 Total Rebate $14,055.70 Municipality Contribution (25%) $3,513.93 MCES Contribution (75%) $10,541.77 2 SUMMARY: Staff is requesting City Council approval to extend the water rebate program through December 31, 2017 (which will result in a minor loss of revenue in the Water Utility Fund) or until $15,000 in additional rebates has been issued, whichever comes first.