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HomeMy WebLinkAbout5I - WaterEfficiencyGrant Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 16, 2019 AGENDA #: 5I PREPARED BY: BRIAN WELCH, INFORMATION SYSTEMS COORDINATOR PRESENTED BY: BRIAN WELCH, INFORMATION SYSTEMS COORDINATOR AGENDA ITEM: AUTHORIZE CITY STAFF TO APPLY FOR A GRANT FROM THE METROPOLITAN COUNCIL TO FUND A CITY-RUN REBATE/DISCOUNT PROGRAM FOR RESIDENTIAL IRRIGATION “SMART-CONTROLLERS” GOAL AREA AND OBJECTIVE: Improved Water Efficiency 1. Incentivize the use of smart controllers for residential irrigation systems to reduce over-irrigation and decrease demand on groundwater supplies and city infrastructure during summer months. DISCUSSION: Introduction This agenda item is needed to authorize city staff to apply for competitive grant funds from the Metropolitan Council to subsidize a city-run program to encourage and incentivize the purchase and installation of residential irrigation smart controllers. The Met. Council grant program requires a 25% city contribution to the total program costs; therefore city staff seek City Council approval for the use of city funds. History Summer water use due to irrigation of lawns and landscaping can triple the city’s water production. In very dry years (e.g. 2013), the city has even had some difficulty in maintaining water levels in the water storage towers. Connections to the SMSC water system resolves the problem from the supply end, but with finite groundwater resources (see White Bear Lake), the demand side can also be addressed. Numerous cities in the metro area have rebate or discount programs to assist homeowners and/or business owners to replace old irrigation controllers with “smart” controllers that help to reduce water usage by eliminating irrigation when soil moisture is already sufficient due to natural rain. Most eliminate the need for soil moisture sensors by tapping into local weather station via the home’s WiFi network. Some also include smartphone apps where owners can monitor and modify the irrigation schedule. Current Circumstances The City of Prior Lake currently does not offer a rebate or discount program to assist residential homeowners to upgrade their irrigation controllers to help reduce unnecessary water consumption. The Metropolitan Council is offering grants up to $50,000 (with a 25% city match) to assist cities in creating such a program. Numerous cities in the region have similar programs in place that can provide templates for a program in Prior Lake. (see discount program in Burnsville - http://www.ci.burnsville.mn.us/193/Water-Sewer or the rebate program in Woodbury - https://www.woodburymn.gov/departments/environment/ smart_irrigation_controller_program_for_residential.php for two examples). With approval from the City Council, staff will develop a smart meter rebate or discount program that meets the requirements of the Met. Council grant program, including EPA WaterSense-certified controllers and the documentation required to receive quarterly reimbursements from the Met. Council over the life of the city’s program. New developments/construction are not eligible for the Met. Council grant program. At roughly $200-$250 per smart controller, a $20,000 program could replace up to 1,000 irrigation controllers within Prior Lake over the 2 year duration of the Met. Council grant program. These controllers are shown to reduce water use by roughly 10%-20%, depending on previous irrigation settings. Any remaining Met. Council grant money would be used to assist in ongoing upgrades to city irrigation systems at city parks and facilities. ISSUES: The Met. Council grant program is funded through the state’s Clean Water, Land & Legacy Amendment. Applications must be received by the Met. Council by Sept. 30, 2019. The state funds are already available through the 2019-2021 biennial budget, but the city may not issue any rebates or discounts prior to completion of the grant agreement between the Met. Council and the city upon approval of the city’s grant application. That grant agreement would require City Council approval through a separate resolution later this year. The Met. Council grant funds are available through 2021. Staff is asking the City Council to approve the application for the Met. Council grant and to commit city funds for the 25% match requirement. The funds would come from the Water Enterprise Fund starting Jan. 1, 2020 (601-49400.00- 33422.15 State Aids/Grants-Operating). In order to utilize all funds of the grant in the event resident response does meet expectations, the city’s grant application will include a section to utilize any remaining funds to aid in upgrades to city irrigation systems at city parks and facilities. FINANCIAL IMPACT: The Met. Council Water Efficiency Grant Program requires a 25% match from the city and that the residents also contribute to the cost of the smart controllers. City staff proposes a $20,000 program made up of $15,000 from the Met. Council grant and $5,000 match from the city’s Water Enterprise Fund. ALTERNATIVES: 1. Motion and a second as part of the consent agenda to authorize City Staff to submit an application to the Metropolitan Council Water Efficiency Grant Program. 2. Motion and second to remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1