4.2. ERMUSR 11-15-2011Elk River:
Municipal U
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
UTILITIES COMMISSION MEETING
pBWEBErO' BY
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Phone: 763.441.2020
Fax: 763.441.8099
TO: FROM:
Elk River Municipal Utilities Commission Tom Sagstetter -Conservation and Key
John Dietz -Chair Account Manager
Daryl Thompson -Vice Chair
Al Nadeau -Trustee
MEETING DATE: AGENDA ITEM NUMBER:
November 15, 2011 4.2
SUBJECT:
Review and Consider Water Conservation Program
BACKGROUND:
Per the discussion of fees and tiered rates at the September 13, 2011 Commission meeting, the
water conservation prc;gram was discussed. The program will establish incentives for
implementing water efficiency measures for commercial customers in 2012. Commercial
customers with high intensity water use will be eligible for an exemption from the tier three rates
provided they enroll and annually participate in the water conservation incentive program.
DISCUSSION:
There was particular interest in commercial tier three rates and providing the commercial
customers in this category with incentives to implement water conservation measures. By taking
advantage of the incentives and reducing water consumption, the customer would be exempt
from tier three rates and allow them to be billed at tier two rates for all water consumption.
The pilot program under review by ERMU provides financial incentives as well as points for
implementing water conservation measures. The high intensity commercial water use customer
will be required to implement water conservation measures that will earn Water Conservation
Points (WCPs) and may also receive financial incentives for implementation of measures.
Enrollment in the pilot program will require the customer to implement measures that achieve 10
WCPs in the first year. To continue to be billed at the tier two rates each participating customer
must continue to implement measures in the incentive program that allow for the accumulation
of 5 WCPs each year.
Water Conservation Points
5 pts Install SMART Controller on irrigation systems ($500 maximum rebate per
customer/year)
1 pt Install 3 Eco-Irrigation Heads (Buy 2 get 1 free). Need to identify local retailers of
heads. ($250 maximum rebate per customer/year)
8 pts Install Rain Garden/Xeriscape/Eco-Grass/ Native Grass/ 2" black dirt (maximum $500
per customer/year)
3 pts Annual irrigation inspection including ($100 water rebate/year):
1. Program controller for proper moisture level
2. Adjust all heads to avoid watering hard surfaces
3. Check for leaks
4. Check rain gauge
3 pts Participate in Project Conserve
2 pts Install water efficient faucets, aerators, shower heads, clothes washer, dishwasher
2 pts Install rain barrels and or retention ponds
FINANCIAL IMPACT:
Maximum financial impact would be a reduction in revenue by $20,611.50 based on July 2011
Water Rate Analysis.
The financial rebates and water bill credits are included as part of the annual budget.
ACTION REQUESTED:
Staff recommends approval of this commercial pilot program for 2012. Staff also recommends
that this program be evaluated for possible expansion in 2013.
ATTACHMENTS:
None