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Home My WebLink About6.g. Water Efficiency Grant Program I:\City Clerk\Agenda Items\Approved Items\6.g. Water Efficiency Grant Program.docx E X E C U T I V E S U M M A R Y City Council: September 3, 2019 AGENDA ITEM: Water Efficiency Grant Program AGENDA SECTION: Consent PREPARED BY: Brian Erickson, PE, Director of Public Works / City Engineer AGENDA NO. 6.g. ATTACHMENTS: Water Efficiency Grant Program and Application Form APPROVED BY: LJM RECOMMENDED ACTION: Motion Directing Staff to Submit an Application to the Metropolitan Council Water Efficiency Grant Program BACKGROUND The Metropolitan Council (MCES) is offering a Water Efficiency Grant to be used towards water efficient technologies. MCES has $750,000 available, appropriated by the 2019 Minnesota Legislature, to be awarded to municipalities that make an effort to reduce potable water consumption. Grants will be awarded in amounts from $2,000 to $50,000. Grant funding covers 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 low-flow toilets, Energy Star-rated washing machines, and WaterSense irrigation controllers. The application due date is Monday, September 30th. In reviewing a few cities that already offer water conservation rebates, the funding is generally at $50 for Water Sense Toilets, $150 for Energy Star Washers and $150 for Water Sense Irrigation Controllers. 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. Assuming 100 applications distributed equally among the three rebate programs, an annual savings of 526,000 gallons would be realized. Regarding program cost, making similar utilization assumptions, the total estimated rebate payments would be $17,000 per year with $12,750 (75%) funded from the MCES Grant Program and $4,250 in funds from the Rosemount Water Utility Fund. If the application process is successful, Staff will implement the Water Efficiency Rebate Program for City of Rosemount customers. The details regarding the program, including process, administration and communication and application materials will be presented to the City Council at a future date. RECOMMENDATION Staff recommends approval of a motion directing application to the Metropolitan Council Water Efficiency Grant program. 1 Metropolitan Council Water Efficiency Grant Program Overview The Metropolitan Council (Council) will implement a water efficiency grant program effective September 30, 2019 to June 30, 2022. 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%. Municipalities will use the combined Council and municipality funds to run their own grant or rebate programs. 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 2019 Session Law $375,000 the first year and $375,000 the second year are for the water demand reduction grant program to encourage municipalities in the metropolitan area to implement measures to reduce water demand to ensure the reliability and protection of drinking water supplies. Fiscal year 2020 appropriations are available until June 30, 2021, and fiscal year 2021 appropriations are available until June 30, 2022. Grant Program Goal The goal of the water efficiency 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 • Combined Council and municipality funds cannot pay for 100% of an eligible activity’s cost • A portion of each eligible activity’s cost must be paid by the property owner • Grant recipients must display the Clean Water, Land and Legacy Amendment logo and the Metropolitan Council logo on program-related web pages and paper communications Grant Program Structure: Administration and Funding The Water Efficiency Grant Program will be administered by Metropolitan Council Environmental Services (MCES) and will be funded with $750,000 appropriated by the 2019 Minnesota Legislature. 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 approved devices that use substantially less water. 2 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 and operation of their rebate or grant program and its details. Grant payments to the municipality will be for 75% of approved program amounts. The municipality must provide the remaining 25% of the program cost. Municipality rebates or grants are eligible for reimbursement on device replacements conducted September 30, 2019 through June 30, 2022. Here is an example showing the grant funding design: Eligibility Per legislative language, the grant program is limited to municipalities in the seven-county metropolitan area. Municipalities 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 municipalities: • Entirely pass through grants received (as is being done by MCES) • Verify purchase of devices to receive grants • Retain records and cooperate with any audits • Conduct 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 • Provide quantitative information for state reporting purposes Eligible water efficiency devices consist of the following: • Toilet replacement with a US EPA WaterSense labeled toilet • Irrigation controller replacement with a US EPA WaterSense labeled controller • Clothes washing machine replacement with an US DOE Energy Star labeled clothes washing machine • Irrigation spray sprinkler body replacement with a US EPA WaterSense labeled spray sprinkler body • Irrigation system audit by an Irrigation Professional certified by a US EPA WaterSense program Expenses eligible for reimbursement 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 September 30, 2019. Required information includes: o the municipality’s rebate or grant program design and work plan o proposed examples of communications to property owners o requested total grant amount o estimated annual amount of water saved by the applying municipality 3 • Application form is available at: https://metrocouncil.org/Wastewater-Water/Funding- Finance/Available-Funding-Grants.aspx • Submit competed application to: brian.davis@metc.state.mn.us • Metropolitan Council will notify municipalities of grant awards and provide grant agreements by December 2, 2019. Proposal Selection Criteria In the event that funds requested exceed funds available, the following criteria will be used to determine the amount granted to a given municipality: • Municipalities that are supplied 100% with groundwater • Municipalities with identified water supply issues in Master Water Supply Plan Community Profiles or Local Water Supply Plans • Municipalities’ ratio of peak monthly water use to winter monthly water use • Municipalities’ average residential per capita water use • 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 device installation o Municipality matching funds disbursed o Number of unmet funding requests from property owners, if any • 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 fully utilize grant awards within the grant period. Qualified Activities • Toilet replacement with a US EPA WaterSense labeled toilet: http://www.epa.gov/WaterSense/product_search.html • Irrigation controller replacement with a US EPA WaterSense labeled controller: https://www.epa.gov/watersense/product-search • Clothes washing machine replacement with an US DOE Energy Star labeled clothes washing machine: https://www.energystar.gov/productfinder/product/certified-clothes-washers/results • Irrigation spray sprinkler body replacement with a US EPA WaterSense labeled spray sprinkler body https://www.epa.gov/watersense/product-search • Irrigation system audit by an Irrigation Professionals certified by a US EPA WaterSense program https://www.epa.gov/watersense/find-pro 4 Reporting Example Community Property Street Address Property Type Device Replaced Cost per Device # of Devices Rebate or Grant per Device Est. Annual Water (Gal) Saved Per Device Total Rebate or Grant Municipality Contribution Eligible Grant Amount Anytown 652 Silvis St Residential Clothes Washer $624.60 1 $150.00 3,000 $150.00 $37.50 $112.50 Anytown 1952 Ingram Way Residential Irrigation Controller $199.99 1 $100.00 8,800 $100.00 $25.00 $75.00 Anytown 630 Gibbons Ave Residential Clothes Washer $599.90 1 $150.00 3,000 $150.00 $37.50 $112.50 Anytown 4424 Barriger Blvd Residential Toilet $168.00 1 $50.00 4,000 $50.00 $12.50 $37.50 Metropolitan Council Water Efficiency Grant Application Form Applicant Information: Municipality: _________________________________________________________________ Municipal Utility: ______________________________________________________________ Mailing Address: ______________________________________________________________ Primary Contact Information: Municipality primary authorized representative (all correspondence regarding the Water Efficiency Grant Program should be addressed to individual named below): NAME: _________________________________________________________________ TITLE: _________________________________________________________________ STREET: _________________________________________________________________ CITY, ZIP: _________________________________________________________________ PHONE: _________________________________________________________________ EMAIL: _________________________________________________________________ Secondary Contact Information: Municipality secondary authorized representative: NAME: _________________________________________________________________ TITLE: _________________________________________________________________ STREET: _________________________________________________________________ CITY, ZIP: _________________________________________________________________ PHONE: _________________________________________________________________ EMAIL: _________________________________________________________________ Municipal Total Per Capita Water Use (2018): _________________ (gallons per person-day) Municipal Residential Per Capita Water Use (2018): _________________ (gallons per person-day) Municipal Ratio of Peak Month to Winter Month Water Use (2018): ________________ Municipality’s estimated annual water savings from proposed program: _______________(gallons) City of Rosemount Rosemount 2875 145th Street West, Rosemount, MN 55068 Brian Erickson Director of Public Works/City Engineer 2875 145th Street West Rosemount, 55068 651-322-2022 brian.erickson@ci.rosemount.mn.us Jessie Barikmo Public Works/Engineering Secretary 2875 145th Street West Rosemount, 55068 651-322-2022 jessie.barikmo@ci.rosemount.mn.us 104 72 3.3 750,000 Municipal Utility Grant or Rebate Program Design: Requested Grant Amount (must equal 75% of total program budget): $_____________________ Required Utility Matching Amount (must equal 25% of total program budget): $______________ Will your program be a grant program or rebate program? _______________________________ Estimated Number of Items: Item Estimated Number Toilets Irrigation Controllers Clothes Washing Machines Irrigation Spray Sprinkler Bodies Irrigation System Audits 2 12,750 4,250 Rebate 40 50 50 0 0 Project Work Plan and Schedule:* Task Description Responsible Person Start Date Completion Date * Municipal utility may create own project plan and schedule form 3 Post information on City website about program City of Rosemount Staff 1/1/20 6/1/22 Print fliers for distribution at City Hall City of Rosemount Staff 1/1/20 6/1/22 Print advertisement in City's newsletter City of Rosemount Staff 3/1/20 3/1/22 Offer rebates on washing machines, toilets, and irrigation systems controllers City of Rosemount Staff 1/1/20 6/1/22 Communications to Property Owners: How will your program be advertised (check all that apply): Newsletter ____ Print Media ____ Email ____ Twitter ____ Website____ Radio ____ Television ____ Facebook ____ Nextdoor ____ Other Social Media ____ Please attach examples of proposed newsletter, print media, or email communications 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 •Combined Council and municipality funds cannot pay for 100% of an eligible activity’s cost • A portion of each eligible activity’s cost must be paid by the property owner •Grant recipients must display the Clean Water, Land and Legacy Amendment logo and the Metropolitan Council logo on program-related web pages and paper communications 4 ✔ ✔ ✔ ✔ ✔ ✔ Water Conservation page currently includes information about the rebate: https://www.ci.rosemount.mn.us/272/Water-Conservation Attachment 1 - Example of social media posting Attachment 2 - Example of past newsletter Irrigation System Rebate Rosemount Public Works 651-322-2022 pwadm@ci.rosemount.mn.us The City is offering a rebate of 50% of the pre-tax cost of the controller, up to a maximum of $150 per controller. Funds are limited and available on a first-come, first serve basis. Program runs through December 2019, or until rebate funds are gone. Must be a WaterSense Qualified System. Mayor’s water challenge T hink of one million gallons of water. Sounds like a flood, right? But in Rosemount, it means the opposite. Rosemount residents pledged to conserve 1,079,505 gallons of water last year, according to the Wyland Foundation, which coordinates the National Mayor’s Challenge for Water Conservation. Last year, Rosemount Mayor Bill Droste asked citizens to take part, and they responded. Rosemount placed 34th in the nation for percentage of residents pledging to help, among cities with populations of 5,000 to 30,000. This spring , Mayor Droste is asking Rosemount to consider more steps to save. Conservation will help preserve our drinking water resources in the aquifers beneath Dakota County and will also save residents on their quarterly water bills. Visit www.mywaterpledge.com during the month of April to consider some simple steps that can save water, reduce waste, and conserve energ y. You can also enter national drawings for eco-friendly prizes, including a new Toyota Prius and a home irrigation makeover. Printed on recycled paper Visit www.mywaterpledge.com during the month of April. City Hall 2875 - 145th Street West Rosemount, MN 55068-4997 Phone 651-423-4411 • TTY 7-1-1(Minnesota Relay) Mayor: Bill Droste Council Members : Mark DeBettignies, Heidi Freske, Shaun Nelson, Jeff Weisenselff City Administrator: Logan Martin ECRWSS Postal Customer Rebate promotes water conservation The City of Rosemount is one of 19 metro cities awarded a Water Efficiency Grant from the Metropolitan Council. The City is using these funds to issue rebates to residential customers for the purchase and installation of: • WaterSense low-flow toilets (up to $50 per toilet) • EnergyStar washing machines (up to $150 per washer) • WaterSense irrigation controllers (up to $150 per controller) Rebate guidelines and forms are available at City Hall or can be downloaded at www.ci.rosemount. mn.us/publicworks. The rebate program will continue through June 2017, or until all funds have been depleted.