To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Utilities Director
Title
Resolution Approving the 2016 Conservation Rebate Incentive Program
Body
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Executive Summary
The purpose of this memorandum is to request Town Council approval of the 2016 Conservation Rebate Incentive program.
The Water Conservation Master Plan (WCMP) was adopted in 2006 with an overall goal of achieving a water savings of 18% (165 to 135 gallons per capita per day) through various programs. The Castle Rock community, with the help of the Utilities team, has met, exceeded, and maintained this goal. In 2015, the Water Resources / Conservation Division of the Utilities Department updated this document. The new Water Efficiency Master Plan (WEMP) received approval from the Colorado Water Conservation Board (CWCB) in February 2016. The new plan set a goal of an additional 18% (122 to 100) water savings by 2055.
One way the Utilities Department continues to work toward sustaining and building on the conservation goals outlined in the original Water Conservation Master Plan and the new Water Efficiency Master Plan is by offering rebates to the community. The new plan calls for evaluating options to expand this program. Evaluation of potential changes to the program will be done in 2016, but staff does not recommend any major changes in 2016. Staff is recommending the same level of funding for the 2016 rebate incentive program as in 2015, $45,000. The program will continue to be funded by revenue from violations and Block 4 conservation surcharges.
The current rebates available to the Town of Castle Rock Utilities customers are:
• SMART Irrigation Controllers - 50% of the cost of the controller up to $300 per controller; maximum of $300 for residential; and $1,500 for commercial or Homeowner Association (HOA) property owner. These controllers make it easier for customers to irrigate during hours when irrigation is most efficient.
• Rotary Nozzle Retrofit - Up to $5 per nozzle; maximum rebate of $2,000 for non-residential customers.
• Rain Sensors - 50% of the cost of the sensor up to $50.
• SmartScape Renovation - $1.00 per square foot of high water use (HWU) plant material removed (maximum of 1,500 sq. ft.).
If the customer-driven advanced metering infrastructure pilot testing is successful, staff may add these units to the program.
Other than potentially adding the customer-driven advanced metering units to the program, there are no other proposed changes for 2016.
History of Past Town Council, Boards & Commissions, or Other Discussions
On February 24, 2016, the Utilities Commission unanimously recommended support of the 2016 Conservation Rebate Incentive Program as presented.
Budget Impact
The 2016 program will continue to be funded from revenue generated during 2015 from watering restriction violations and a portion of funds from the Block 4 surcharge rate. The average revenues generated and estimated costs for the violations program are shown on Attachment B. The total proposed amount for 2016 is $45,000 available for the conservation incentive program, including irrigation evaluations.
Attachment C looks at rebates for the previous three years, shows the total amount spent for each year, and then breaks that amount into totals for each rebate category. The average over the last three years is the starting point designated for each rebate in 2016.
The amounts and percentages shown in Attachment C represent the starting point, and will be adjusted accordingly, based on actual applications received. If and when funding is depleted in an individual category, funds from one category may be moved to cover demand in another category.
Staff Recommendation
The Utilities staff recommends approval of the 2016 Conservation Rebate Incentive Program, to be effective March 16, 2016.
Proposed Motion
I move to approve 2016 Conservation Rebate Incentive Program.
Attachments
Attachment A: Resolution
Attachment B: Funding Summary
Attachment C: Funding by Category