To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources Manager
Rick Schultz, Water Conservation Specialist
Linda Gould, Water conservation Technician
Title
Resolution Approving the 2021 Town of Castle Rock Water Conservation Rebate Incentive Program
Body
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Executive Summary
The purpose of this memorandum is to request Town Council approval by resolution of the 2021 Conservation Rebate Incentive program (Attachment A). The program is proposed to be funded at a level of $145,000 again this year with rebates being awarded in any of the proposed categories below on a first come first serve basis until the funds have been exhausted.
The core rebate categories remain intact, with only one proposed change for 2021. Staff is recommending the maximum amount of the Toilet Retrofit rebate be reduced from $125 to $100.
The proposed rebates and incentives for 2021 are:
• SmartScape Renovation Rebate - $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 Rebate - Fifty (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 Rebate - Up to $5 per nozzle; maximum rebate of $2,000 for non-residential customers.
• Toilet Retrofit Rebate - Up to $100 per toilet; maximum rebate of $400 or four (4) toilets for residential and non-residential customers.
• Whole-home Water Monitoring System Rebate - fifty (50) percent of the cost of the system up to $200 for residential and non-residential customers.
• Food/Beverage Toilet Retrofit Incentive Program - This program is being carried over from 2020 and encourages removal of toilets using 1.28 gallons per flush (GPF) or higher, and replacement with an ultra-high efficiency, water saving toilet using 0.8 gallons per flush, or less.
History of Past Town Council, Boards & Commissions, or Other Discussions
On January 27, 2021, the Castle Rock Water Commission was presented the 2021 Conservation Rebate Incentive Program. Castle Rock Water Commission voted 6-0 in favor of recommending Town Council approval of the 2021 Conservation Rebate Incentive Program as presented.
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 exceeded this goal. In 2015, the Water Resources / Conservation Division of Castle Rock Water updated this document as the new Water Efficiency Master Plan (WEMP) which received approval from the Colorado Water Conservation Board (CWCB) in February 2016. The WEMP set a goal for per capita water use to 100 Gallons Per Capita Per Day (GPCD) by 2055. Progress on GPCD water use since 2015 when the WEMP was published is shown in the Figure below.
The figure indicates excellent progress over the last ten years with per capita water use going as low as 112 GPCD. Ongoing water conservation and efficiency efforts are required in order to continue reductions achieved and meet our future goal of 100 GPCD. The WEMP is due to be updated in 2022.
One way that Castle Rock Water continues to work toward sustaining and building on the conservation goals outlined in the original WCMP and the new WEMP is by offering water efficiency rebates to the community. The WEMP calls for evaluating options to expand this rebate program. After evaluation of the 2020 program, staff is recommending a reduction of the maximum rebate amount for the toilet retrofit rebate program. Based on actual purchase prices submitted through the first year of this program, the proposed $100 rebate will cover approximately 75 percent of the total cost of a new fixture.
The three most popular rebates are the smart irrigation controllers, residential SmartScape renovations, and rotary nozzles. The smart irrigation controllers have seen the largest gain in popularity primarily due to improvements in technology, ease of use, and availability. Turf reduction through the SmartScape renovation rebate continues to be the most effective. Recent data indicates a 19% water savings on residential accounts and 33% water savings on non-residential accounts. The rebate program undergoes continuous evaluation and adjustments are recommended as needed (see figure below).
Overall funding for the 2021 rebate incentive program is proposed at the same level as in 2020.
In response to the ongoing pandemic and the associated disruption to the food and beverage industry and in an effort to assist local food and beverage establishments, in 2020 Castle Rock Water created a toilet retrofit incentive program. This program works with local businesses to replace existing toilets with ultra-high-efficiency fixtures using only 0.8 gallons per flush (GPF). This retrofit is available at no cost to the food/beverage establishment, and the old toilets will be recycled through a partnership between Castle Rock Water and Colorado Springs Utilities.
This food/beverage toilet retrofit incentive program will continue to be funded through a carryover of excess 2020 rebate funds in the amount of $40,968.79. Any money not used for this program will be reallocated to the Metzler Park turf replacement project that was completed in 2019.
Budget Impact
The 2021 program will continue to be funded from revenue generated during 2020 watering schedule 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 rebate amount for 2021 is $145,000 which based on recent violations and Block 4 surcharge revenues should more than cover the program.
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 2021 Conservation Rebate Incentive Program.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Attachment B: Rebates vs Surcharge Violation Revenues
Attachment C: Funding Summary