To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, P.E., Director of Castle Rock Water
Title
Resolution Approving the 2019 Conservation Rebate and Incentive Program
Body
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Executive Summary
The purpose of this memorandum is to request Town Council approval of a Resolution (see Attachment A) approving of the 2019 Conservation Rebate Incentive program.
The core rebate program remains intact, with two proposed changes for 2019. Staff is recommending the maximum rebate amount for non-residential SmartScape renovation be increased from $10,000 to $15,000 per individual account. Staff is also recommending the per square foot reimbursement be increased from $1 per square foot to $1.10 per square foot. This value has not been adjusted in a decade and costs have gone up significantly in this time. Increasing the per square foot reimbursements will further incentivize SmartScape renovation.
The proposed rebates for 2019 are:
• SmartScape Renovation - $1.10 per square foot of high water use plant material removed (minimum of 250 sq. ft., maximum rebate of $1,500 for residential and minimum of 1,500 sq. ft., maximum rebate of $15,000 for non-residential).
• Smart Irrigation Controllers - 50 percent of the cost of the controller up to $300 per controller; maximum of $300 for residential; and $1,500 for non-residential customers.
• Rotary Nozzle Retrofit - Up to $5 per nozzle; maximum rebate of $2,000 for non-residential customers.
History of Past Town Council, Boards & Commissions, or Other Discussions
On January 23, 2019, the Castle Rock Water Commission unanimously voted to recommend Town Council approve the 2019 Conservation Rebate Incentive Program.
Discussion
The original 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 Castle Rock Water team, has met, exceeded, and maintained this goal. In 2015, the Water Resources / Conservation Division of Castle Rock Water 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 percent (122 to 100 gallons per capita per day) water savings by 2055.
One way, Castle Rock Water continues to work toward sustaining and building on the conservation goals outlined in the original Water Conservation Master Plan and the new WEMP is by offering water efficiency rebates to the community. The new plan calls for evaluating options to expand this program. Evaluation of potential changes to the program were conducted in 2018 and a non-residential SmartScape pilot was put in place and funded at $100,000. Staff is recommending the same level of funding for the 2019 rebate incentive program as in 2018, which is $45,000, and includes the typically approved rebates for residential customers as well as the $100,000 for non-residential SmartScape renovation program.
Budget Impact
The 2019 program will continue to be funded from revenue generated during 2018 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 2019 is $145,000 available for the conservation incentive program, including irrigation evaluations.
Approximately $100,000 of this funding is targeted towards the non-residential SmartScape Renovation program. This amount is to be broken up into blocks not to exceed $15,000 per applicant. Funds not used for non-residential SmartScape renovation will be available for the other rebates.
Attachment C summarizes the rebate activity for the previous three years, and sets the starting point for the current year program.
Staff Recommendation
Castle Rock Water staff recommends approval of the 2019 Conservation Rebate Incentive Program.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1 2019 Program
Attachment B: Funding Summary
Attachment C: Recap of previous years