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4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: JANUARY 6, 2020
AGENDA #: 5M
PREPARED BY: BRIAN WELCH, INFORMATION SYSTEMS COORDINATOR
ANDY BROTZLER, PE, PUBLIC WORKS DIRECTOR/CITY ENGINEER
PRESENTED BY: BRIAN WELCH, INFORMATION SYSTEMS COORDINATOR
AGENDA ITEM: ADOPT RESOLUTION NO. 20-006 - AUTHORIZING THE MAYOR AND CITY
MANAGER TO ENTER INTO A GRANT CONTRACT WITH THE
METROPOLITAN COUNCIL TO FUND A CITY-RUN REBATE/DISCOUNT
PROGRAM FOR RESIDENTIAL IRRIGATION “SMART-CONTROLLERS”
GOAL AREA AND
OBJECTIVE:
Environmental Stewardship & Recreation
1.Provide clean and safe drinking water for the community and protect drinking
water resources.
DISCUSSION: Introduction
This agenda item is needed to authorize city staff to enter into a grant agreement
(Exhibit A) to receive 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 City’s grant application was approved
on November 18, 2019 for $8,000. The Metropolitan Council grant program
requires a 25% city match for the total program costs; City matching funds upto
$2,670 will be funded from the Water Enterprise Fund. The combination of grant
and Ciy funds allows the initial smart controller subsidy program to operate with a
$10,670 budget through the end of the grant program on June 30, 2022.
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.
ISSUES:
FINANCIAL
IMPACT:
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 offered 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 will 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).
Through a motion at the Sept. 16, 2019 meeting, the City Council gave approval
for city staff to apply to the grant program with a proposal for a $20,000 smart
meter rebate or discount program that met the requirements of the Metropolitan
Council grant program, including EPA WaterSense-certified controllers and the
documentation required to receive quarterly reimbursements from the Metropolitan
Council over the life of the city’s program. New developments/construction are not
eligible for the Metropolitan Council grant program. Due to the large number of
applicants for the grant, and the limited state funds the Metropolitan Council
decided to provide grant funds to all qualified applicants, but had to reduce the
funding to each of the applicants.
At roughly $200-$250 per smart controller, a $10,000 program could replace up to
500 irrigation controllers within Prior Lake over the 2 year duration of the
Metropolitan Council grant program. These controllers are shown to reduce water
use by roughly 10%-20%, depending on previous irrigation settings. Any
remaining Metropolitan Council grant money would be used to assist in ongoing
upgrades to city irrigation systems at city parks and facilities.
The Metropolitan Council grant program is funded through the state’s Clean
Water, Land & Legacy Amendment. The state funds from the Clean Water, Land
& Legacy Amendment are already available through the 2019-2021 biennial
budget, but the city may not issue any rebates or discounts prior to completion of
this grant agreement between the Metropolitan Council. The grant agreement
(Exhibit A) requires City Council approval through a resolution. The Metropolitan
Council grant funds are available through June 30, 2022.
Staff is asking the City Council to approve the resolution to enter into a grant
agreement with 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. The grant agreement has been reviewed by the City Attorney who found
no issues of concern.
In order to utilize all funds of the grant in the event resident response does meet
expectations, the city’s grant application included a section to utilize any remaining
funds to aid in upgrades to city irrigation systems at city parks and facilities.
The Metropolitan 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 $10,670 program made up of $8,000 from the
Metropolitan Council grant and $2,670 match from the city’s Water Enterprise
Fund.
ALTERNATIVES: 1.Motion and a second as part of the consent agenda to adopt the resolution
to enter into a grant agreement with the Metropolitan Council for the Water
Efficiency Grant Program.
2.Motion and second to remove this item from the consent agenda for
additional discussion.
RECOMMENDED
MOTION:
Alternative #1
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 20-006
A RESOLUTION ENTERING INTO A GRANT AGREEMENT WITH THE METROPOLITAN
COUNCIL TO DEVELOP A REIMBURSEMENT PROGRAM FOR RESIDENTIAL SMART
IRRIGATION CONTROLLERS
Motion By: Second By:
WHEREAS, Pursuant to a motion, the City Council on September 16th, 2019 directed Public
Works staff to apply for the Metropolitan Council Water Efficiency Grant program;
and
WHEREAS, On December 2, 2019, the Metropolitan Council approved an $8,000 grant to the
City to be combined with a minimum 25% match ($2,670).
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Council hereby approves the Mayor and City Manager to enter into a grant
agreement with the Metropolitan Council.
3. The Council directs City Staff to create a program to assist city residents to replace irrigation
controllers with new “smart controllers” with financial assistance developed in a manner
compliant with the terms of the grant agreement.
Passed and adopted by the Prior Lake City Council this 6th day of January 2020.
VOTE Briggs Thompson Burkart Braid Erickson
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Lori Olson, Assistant City Manager
EXHIBIT A